Oil prices are on track for their longest losing streak in a year, with Brent crude dropping towards $98 a barrel and West Texas Intermediate (WTI) falling below $90. Brent has lost over 9% in six consecutive days, marking its worst run since August 2025, while WTI for November delivery fell 1.1% to $89.56. This significant decline follows a recent surge that saw Brent trading above $102 a barrel.
The primary drivers behind this downturn are Saudi Arabia's push to restore oil exports through its critical East-West pipeline, which has a capacity of 7 million barrels a day and was damaged earlier in the month. This restoration would bypass the Strait of Hormuz, a crucial chokepoint. Additionally, optimism for a diplomatic resolution to the conflict between the US and Iran, including productive talks between US envoys and Iranian mediators, is easing market tensions.
Despite the recent decline, oil prices have still rallied by more than 60% this year, largely due to disruptions in shipments through the Strait of Hormuz. This rally has contributed to inflationary pressures, with product prices increasing even more rapidly than crude. US President Donald Trump has reportedly encouraged advisers to consider a ban on US diesel exports to address a domestic fuel crunch.
