Oil prices dip to two-week low on Saudi pipeline hopes and Iran diplomatic talks
Brent and U.S. crude fell to their lowest levels since early September as markets responded to reports of possible Iranian concessions and the anticipated restart of Saudi Arabia's east-west pipeline.
Oil prices fell for a fifth consecutive session, with Brent crude briefly slipping below $98 a barrel and U.S. crude under $93, their lowest points since Sept. 8. The decline followed reports that Iran might reopen the Strait of Hormuz if the United States eases pressure, though Iran’s semi-official Fars agency called the reports unreliable.
The market also reacted to news that Saudi Arabia’s key east-west pipeline, shut after multiple attacks, had resumed operations and could soon restart exports from a Red Sea port. Reuters and Bloomberg cited sources familiar with the matter confirming the pipeline’s restart and ongoing testing.
“If you look at the increases we’ve seen in just the last two weeks, the enormous majority of that increase is because the Houthis attacked a Saudi pipeline and the Saudis had to shut down that pipeline,” Secretary of State Marco Rubio told NBC’s “TODAY.”
Rubio added that the United States remains open to a possible meeting with Iran’s president, though no schedule has been set.
The price drop coincided with lower U.S. Treasury yields and modest gains in global equity indexes, including Europe’s Stoxx 600 and Germany’s DAX.