59 mins agoWTI crude slips toward $90, lowest level in September, as Gulf supply outweighs diesel crunch
West Texas Intermediate (WTI) crude oil price lost 44 cents, or 0.49%, to settle at $90.08 a barrel Wednesday — touching its lowest point since Sept. 1.
The drop in WTI pricing comes as recovering Gulf crude supplies and diplomatic efforts temporarily ease the market.
The global Brent benchmark is around $100 at $99.62.
This transatlantic split is largely driven by soaring European low-sulfur gasoil premiums, which hit a record $95 a barrel over Brent.
Europe remains highly dependent on U.S. diesel and jet fuel imports following the severe disruption of Middle East supplies sparked by the U.S.-Israeli war on Iran.
Saudi Arabia successfully resumed operations on its 7-million-barrel-per-day East-West Pipeline to the Red Sea, which had been shut down following drone attacks Sept. 11. The Kingdom is also actively offering extra barrels to Asian refiners outside the contested Strait of Hormuz.
Despite President Donald Trump threatening to “annihilate” Iran, he and his envoys held productive talks with Iranian mediators. These dual-track maneuvers have injected sudden, cautious optimism that hostilities could halt.
Driving up Brent is the looming prospect of a U.S. diesel export ban. Trump voiced support for a ban to lower domestic pump prices, though market analysts and U.S. officials warn that choking off U.S. exports would exacerbate the global supply shortage and fail to cure high domestic energy costs.
For now, the reopening of Saudi infrastructure and rising Iraqi oil exports are providing much-needed relief to WTI pricing, allowing crude to find a temporary floor amid the ongoing wartime volatility.
Reuters contributed to this report.