Oil prices are experiencing their longest losing streak in a year, with Brent crude falling towards $98 a barrel and West Texas Intermediate (WTI) for November delivery dropping below $90. Brent has now declined for six consecutive sessions, losing over 9%, marking its worst run since August 2025. This downturn is attributed to easing geopolitical tensions and increased supply expectations in the Middle East. Despite the recent slide, oil prices remain more than 60% higher year-to-date, largely due to ongoing Middle East hostilities that have disrupted shipments through the critical Strait of Hormuz.
The decline in oil prices was primarily spurred by Saudi Arabia's announcement that it aims to restore oil exports via its critical East-West pipeline in the coming days. This pipeline, with a capacity to carry 7 million barrels a day, was damaged in earlier attacks but its restoration would allow Riyadh to bypass the Strait of Hormuz. Additionally, US President Donald Trump stated that officials had a "very productive" meeting with Iranian envoys regarding an end to the war, with more meetings planned, despite his earlier threats against Iran. This diplomatic progress has further eased concerns about prolonged supply disruptions.
Further contributing to the price drop are reports of increased US crude inventories. API data showed a rise of 1.7 million barrels last week, contrary to expectations of a 578,000-barrel draw. The surge in oil prices this year has contributed to inflation, with product prices, including diesel, rallying even more than crude. In response to this fuels crunch, President Trump mentioned encouraging his advisers to support a ban on US diesel exports to alleviate domestic pressures.
