Global oil prices declined on Thursday, with Brent crude down 1.1% to $96.92 per barrel and US West Texas Intermediate (WTI) crude down 1.4% to $89.18 per barrel. The drop was attributed to the recovery of crude oil exports from the Gulf region and an unexpected increase in US inventories. This development has alleviated concerns about supply disruptions, allowing prices to ease.
According to a report by Reuters, Saudi Arabia has resumed loading oil onto tankers from Yanbu after restarting the East-West pipeline. This move is expected to boost oil exports from the region. Additionally, the US Energy Information Administration reported that crude inventories rose by 922,000 barrels to 427.3 million barrels in the week ending September 25, 2026. This increase was contrary to analysts' expectations of a 264,000-barrel decline.
The recovery of Gulf exports has been significant, with Goldman Sachs estimating that exports from the region, including those via tankers sailing with disabled transceivers, reached 23.3 million barrels per day last week. This is in line with the 2025 average and represents a doubling of exports in September. The increase in exports has contributed to the easing of supply concerns, which had driven prices up in recent weeks.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, are expected to maintain their current oil production targets at a meeting on Sunday. According to sources, the alliance is likely to keep production levels unchanged for November 2026. This decision is being closely watched by market participants, as it could impact global oil prices.
Despite the recent decline in prices, both Brent and WTI crude have posted significant monthly gains. Brent rose by around 14% in September, its largest monthly increase since July 2026, while WTI gained about 5%. These gains were driven by concerns about supply disruptions and the potential for conflict in the Middle East.
Market participants are also keeping a close eye on diplomatic efforts between the US and Iran to resolve the conflict in the Middle East. Any progress in these talks could potentially impact oil prices, as the region is a significant oil-producing area. For now, however, prices are focused on the supply and demand fundamentals.
The current price of oil is a significant concern for many countries, as it can impact economic growth and inflation. As such, market participants are closely watching developments in the oil market and assessing the potential impact on the global economy. With many factors at play, oil prices are likely to remain volatile in the coming weeks.
Key points
- Global oil prices fell 1% on Thursday due to the recovery of Gulf exports and an unexpected increase in US inventories.
- OPEC+ is expected to maintain its current oil production targets at a meeting on Sunday.
- Despite recent declines, oil prices have posted significant monthly gains, driven by concerns about supply disruptions and conflict in the Middle East.
