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Oil Prices Plunge as Saudi Pipeline Restarts, US-Iran Talks Boost Supply Hopes
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Firstpost•23-09-2026, 09:51
Oil Prices Plunge as Saudi Pipeline Restarts, US-Iran Talks Boost Supply Hopes
- •Oil prices fell further as Saudi Arabia resumed crude flows through its East-West Pipeline, reducing fears of prolonged supply disruption.
- •Brent futures dropped below $100 a barrel for the first time since September 8, trading at $98.77, while US West Texas Intermediate crude was around $90.
- •The East-West Pipeline, which can reroute 4 million barrels per day, restarted at a reduced rate after drone attacks, with full capacity restoration expected in weeks.
- •Hopes for a diplomatic breakthrough between the US and Iran, following productive talks between envoys, eased concerns about energy supply disruptions.
- •Increased oil exports from Iraq, exceeding 3 million barrels per day, and a rise in US crude inventories by 1.8 million barrels also contributed to the downward pressure on prices.
Key Questions Answered
Oil prices fell as Saudi Arabia resumed crude flows through its key East-West Pipeline and optimism grew from diplomatic talks between the US and Iran regarding supply disruptions.
The East-West Pipeline has a maximum capacity of about 7 million barrels per day and has been used to reroute around 4 million barrels per day of crude.
US crude stocks increased by 1.8 million barrels in the week ended September 18, defying analysts' expectations for an inventory drop.
