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Brent crude futures fell 7 cents, or 0.07%, to $99.18 a barrel at 0119 GMT. US West Texas Intermediate (WTI) futures dropped 35 cents, or 0.39%, to $90.17 a barrel.
The decline followed a stronger session on Tuesday. Brent closed below $100 a barrel for the first time since September 8.
Markets reacted to signs of improving oil supplies. Traders also welcomed reports of diplomatic contacts between the United States and Iran.
Saudi Arabia restarted operations on its East-West Pipeline on Tuesday, according to three sources familiar with the matter.
The pipeline carries crude from the kingdom’s eastern oil fields toward the Red Sea. Its restart could support global oil supplies and reduce pressure on alternative shipping routes.
Drone attacks forced Saudi Arabia to shut the pipeline on September 11. Saudi authorities blamed Iraqi militia groups for the attacks.
The shutdown halted crude loadings at the kingdom’s Yanbu port.
Saudi Arabia has relied more heavily on the pipeline since disruptions to oil traffic through the Strait of Hormuz.
The route allows Riyadh to move about 4 million barrels per day, or roughly 4% of global oil supply, toward Yanbu.
Oil markets also responded to signs of possible diplomatic progress.
US President Donald Trump warned Iran on Tuesday that the United States could take severe military action. At the same time, he said his envoys had held productive discussions with Iranian mediators.
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Trump said there was significant momentum toward a possible agreement.
US envoys Steve Witkoff and Jared Kushner took part in the discussions through mediators at the United Nations in New York.
Tim Waterer, chief analyst at KCM Trade, said the talks had given traders some hope for a diplomatic solution.
He said the market now viewed the global oil supply outlook more positively than it did several weeks ago.
Iraq is also increasing crude exports.
Oil Minister Basim Mohammed said the country was exporting more than 3 million barrels per day.
He added that Iraq expects to raise exports through Turkey to more than 600,000 barrels per day.
Provisional data from ship-tracking firms Vortexa and Kpler showed Iraqi crude exports increased in August.
Vortexa estimated August exports at 2.3 million bpd. Kpler put the figure at 2.17 million bpd.
Both estimates exceeded July levels. However, they remained below February’s pre-war levels.
Higher US crude inventories added further pressure to the market.
Industry data showed US crude stocks increased by 1.8 million barrels in the week to September 18.
Analysts surveyed by Reuters had expected inventories to decline.
The market is now waiting for official figures from the US Energy Information Administration (EIA).
The EIA was due to release its weekly inventory report at 10:30 a.m. ET (1430 GMT).
For now, oil markets remain focused on two developments. Improved Middle East supply routes could ease concerns, while diplomatic talks could reduce fears of prolonged disruption.
[…] Oil Prices Edge Lower as Saudi Pipeline Restarts and US-Iran Talks Raise Hopes […]