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Oil prices retreat as Saudi export expectations and US inventories ease fears
Brent extended its drop for a sixth straight session, falling below $99 per barrel and accumulating losses of more than 9.5% over the streak.
Oil prices fell sharply Wednesday as ING strategists said expectations for higher Saudi crude exports, progress in US-Iran diplomacy, and a surprise build in US inventories eased concerns about Middle East supply disruptions.
According to ING, Brent fell for six consecutive sessions, trading below $99 per barrel, while WTI moved near $89 per barrel. ING cited Saudi Arabia restarting operations at its East-West pipeline and potential renewed exports from the Yanbu terminal, a route said to bypass the Strait of Hormuz and with capacity of around 7 million bpd.
On the US data front, ING pointed to API figures showing US crude inventories rose by 1.7 million barrels last week versus expectations for a 578,000-barrel draw. The same data showed gasoline and distillate stocks each fell by 2.2 million barrels, and the market was set to watch the EIA inventory report later in the day for confirmation.
FXStreet also highlighted that US-Iran talks have taken a more constructive tone, with ING noting that President Donald Trump described recent discussions as “very productive.” Despite the pullback, ING said oil prices remain more than 60% higher year to date.
Latest closeWTI crude $90.73 ▼4.1%|Brent $96.22 ▼3.0%|Gasoline (RBOB) $3.293 ▼5.6%