Oil prices fell about 2.5% on Tuesday as signs of improving Middle East crude exports eased some of the supply fears that had pushed prices higher earlier in the session.
Brent crude settled down $2.69 at $102.59 a barrel, while U.S. West Texas Intermediate fell $3.22 to $89.38, according to Reuters.
Export flows improved despite regional conflict
The pullback followed evidence that more crude was moving through alternative export routes. Saudi Arabia increased flows through its East-West pipeline, while loadings from the Red Sea port of Yanbu resumed.
Reuters data showed Middle East crude exports in September reaching about 16.3 million barrels per day, the highest monthly pace since the current conflict began in February.
A sharp reversal from the morning’s supply-risk trade
Earlier on September 29, Trevora News reported that crude prices were rising for a second session as markets focused on supply risks and uncertainty around U.S.-Iran negotiations. The late-session decline represents a material reversal as traders responded to evidence that physical exports were recovering.
Oil remains substantially higher for the month. Brent is still on track for a double-digit September gain after weeks of concern about regional supply interruptions, while U.S. diesel prices remain elevated.
The market is also watching U.S. inventory data and diplomatic efforts involving Washington and Tehran. Any change in sanctions, shipping access or regional export infrastructure could quickly alter the balance between supply fears and recovering flows.
Sources: Reuters energy market coverage and export-flow data.
