WTI Crude Settles at Lowest in a Month as Saudi Pipeline Flows Recover Faster Than Expected

Oil prices tumbled on September 29 as signs of recovering crude exports from the Middle East eased supply fears that had kept prices elevated for weeks. US West Texas Intermediate crude settled 3.48% lower at $89.38 per barrel, a drop of $3.22, touching its lowest level in a month. Brent crude fell more than 2%, closing around $102.59 a barrel.

The selloff was driven by faster-than-expected output recovery from Saudi Arabia's East-West pipeline, which connects the kingdom's eastern oil fields to Red Sea export terminals. Flows through the Strait of Hormuz also showed improvement, with a seven-day average of 13.2 million barrels per day, representing 77% of prewar levels according to Kpler data. The combination of signals suggested that the disruption premium built into prices in recent weeks was beginning to unwind.

Despite Tuesday's sharp decline, both benchmarks remain on course for substantial monthly gains, with Brent up roughly 15% and WTI up around 5.7% for September, reflecting how much the earlier supply disruption fears had lifted prices.