BAKU, Azerbaijan, September 22. Oil prices fell to a two-week low as expectations of increased supplies from the Gulf eased market concerns. Iran has signalled that it could reopen the Strait of Hormuz within seven days, while Saudi Arabia is preparing to resume exports from its Red Sea port of Yanbu.
Brent crude futures for November fell $2.01, or 2 percent, to $98.33 a barrel at 10:27 GMT. West Texas Intermediate (WTI) crude for October declined $2.50, or 2.61 percent, to $93.28 a barrel.
Hamad Hussain, senior climate and commodities economist at Capital Economics, said oil prices appeared to be falling following reports that Iran could reopen the Strait of Hormuz within seven days. He said this could be a positive indication that diplomatic efforts were making progress.
However, Hussain cautioned that other obstacles, including possible tolls and fees, could still need to be resolved before a lasting solution is reached.
Saudi Arabia’s decision to restart operations on its East-West Pipeline is also affecting oil prices. Reuters reported that the country could resume exports from Yanbu later on Tuesday.
