Crude oil prices fell for a third consecutive session on Tuesday, approaching $87 a barrel and reaching their lowest level since early September, as signs of improving Middle Eastern supply flows reduced concerns over near-term availability.
Saudi Arabia’s Energy Minister said oil flows through the East-West Pipeline reached 5.8 million barrels, while Reuters reported that shipments through the route had not been interrupted.
Middle East Exports Recover
Crude exports from the Middle East exceeded pre-war levels on four days during the final week of September, according to reports, indicating that regional supply flows have continued to recover.
Saudi Arabia also reduced the price of its flagship crude grade for Asian buyers as supply conditions improved.
The developments have contributed to lower oil prices after supply disruptions and geopolitical risks had previously pushed energy markets higher.
Emergency Reserves Add to Supply Outlook
Additional supply could come from emergency reserves after G7 countries agreed on Friday to release 100 million barrels of diesel and crude.
The countries also pledgedged to refrain from imposing energy export restrictions, providing additional signals that governments are seeking to maintain international energy flows.
Meanwhile, OPEC+ agreed to keep its oil production targets unchanged for November.
Together, recovering Middle Eastern exports, emergency reserve releases and unchanged OPEC+ production targets have shifted attention toward the availability of supply after months of disruption in global energy markets.
