Brent Crude Settles at $99.25 as Middle East Supply Resumes
Brent crude fell to $99.25 after Saudi pipeline restarts and Trump delayed peace hopes.
Key points
- Brent crude settled at $99.25 per barrel, down 1.09 percent on Tuesday.
- Saudi crude flows through the Strait of Hormuz averaged 2.9 million barrels daily.
- Diesel prices reached record highs due to supply cuts from Iran and Ukraine.
Brent crude futures settled at $99.25 per barrel on Tuesday. The price dropped $1.09, marking a 1.09 percent decline for the session.
US West Texas Intermediate crude finished at $94.99 per barrel. This represented a 1.24 percent loss as traders adjusted to new supply data.
Trump comments disrupt peace deal hopes
Prices fell sharply before stabilizing near the close. President Trump stated that a peace deal would occur after November elections.
This remark dashed earlier optimism regarding diplomatic progress at the UN. Both benchmarks had lost more than two dollars earlier in the day.
Saudi exports increase through Strait of Hormuz
Saudi Arabia restarted its East-West Pipeline after a drone attack halt. Crude flows through the Strait of Hormuz averaged 2.9 million barrels daily.
This volume is significantly higher than the 700,000 barrels seen in August. The Lufkin Daily News reported that Aramco loaded seven VLCCs in the Gulf.
Diesel costs hit record highs globally
Refined product shortages are driving diesel prices to record levels. Wars in Iran and Ukraine have cut exports from major producers.
Analysts expect limited further downside for crude until supply stabilizes. Iran indicated it could reopen the strait within seven days if pressure eases.
