Oil prices eased slightly this week after Saudi Arabia’s flagship oil company reopened a key pipeline.
Crude oil prices hovered near $106.72 per barrel for Brent and $92.11 per barrel for West Texas Intermediate as Saudi Aramco resumed operations on the repaired East-West Pipeline, which had been damaged in drone strikes earlier this month. Saudi officials reported the drones originated from an Iraqi province.
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The pipeline had been closed since Sept. 10, but the oil company started loading vessels with oil at the Red Sea port of Yanbu through the pipeline on Sunday.
Saudi Aramco is producing roughly 3.5 million barrels a day as the Strait of Hormuz remains constrained amid the Iran war.
The conflict continues to persist with new obstacles to diplomatic progress between the United States and Iran.
Over the weekend, President Donald Trump said he rejected Tehran’s seven-day proposal for a ceasefire and the phased reopening of the Strait of Hormuz. Trump’s decision came after reports signaling he wants to resume bombing Iran after the midterm elections in November.
TRUMP DEMANDS AXIOS PULL ‘HOAX’ STORY ABOUT IRAN SANCTIONS RELIEF
Despite Trump’s rejection, Iranian Foreign Minister Abbas Araghchi said he expects a U.S. response to the peace proposal on Tuesday. U.S. and Iranian negotiators have been holding indirect talks in recent days, according to Trump.
Oil prices jumped to more than $4 a barrel in early trading on Monday after Trump rejected the Iranian proposal. This translated to more than $107 per barrel for Brent crude and around $92.60 per barrel for WTI crude. Those prices have since settled down a bit.
