Crude oil falls below $100 per barrel

Global crude oil prices declined on Wednesday (September 23) as supplies expanded from the Gulf region and prospective US-Iran diplomatic talks boosted market sentiment.

Brent crude dropped 7 cents, or 0.07 per cent, to $99.18 per barrel by 7:19 AM Bangladesh time, while US West Texas Intermediate (WTI) fell 35 cents, or 0.39 per cent, to stand at $90.17 per barrel. 

US President Donald Trump stated that his envoys Steve Witkoff and Jared Kushner held productive discussions with Iranian mediators aimed at resolving the ongoing conflict. He noted that momentum was building toward an agreement. 

The improved supply conditions and ongoing diplomatic efforts pushed Brent crude below $100 per barrel on Tuesday for the first time since September 8. 

Tim Waterer, chief analyst at KCM Trade, remarked that the market currently holds a more optimistic view regarding global oil availability than in previous weeks. He added that traders are prioritizing diplomatic progress despite continued harsh rhetoric. 

In the Middle East, Saudi Arabia resumed operations on its East-West pipeline to the Red Sea on Tuesday, signalling increased oil movement. The pipeline, which can transport nearly 4 million barrels daily, was shut down on September 11 following a drone attack. 

Meanwhile, Iraq has raised its crude exports above 3 million barrels per day and aims to push shipments through Turkey past 600,000 barrels per day. 

In the US, commercial crude inventories rose by 1.8 million barrels for the week ending September 18, contrary to market expectations. Official weekly figures from the US Energy Information Administration (EIA) are scheduled for release later on Wednesday at 10:30 AM local time.

-SA