O
Crude oil prices dropped to their lowest level in two weeks after registering a rise in the early trade on Tuesday. Latest developments in the Middle East has taken off some pressure of the market.Iran hinted at reopening the Strait of Hormuz within the next seven days, while Saudi Arabia is preparing to resume oil exports from its Red Sea port of Yanbu.
Traders read both the moves as a sign that will mitigate supply constraints.
The Brent crude futures November contract fell $2.01, or 2%, to $98.33 a barrel at 1027 GMT. The WTI October contract, or 2.61%, to $93.28 a barrel.
Global crude oil benchmarks Brent November, WTI October and WTI November futures all touched their lowest since September 8th.
Iran, in its latest statement, according to reports, said that it could open the Strait of Hormuz within seven days if the United States eased military pressures and lifted its blockade on Iranian ports.
Saudi Arabia has restarted its operations, restarted operations at its East-West pipeline and could resume exports from the Red Sea port of Yanbu later on Tuesday, according to sources familiar with the matter. The pipeline was pumping at a low rate, however, in operation, it added.
At least three fuel processors, according to traders, have been given an informal notice from executives at the state-run company about the loadings.
However, there is no official confirmation from Saudi Aramco officials.
Saudi Arabia increased its exports through the Strait of Hormuz after its East-West pipeline was destroyed following a barrage of strikes from Iran-backed Yemen Houthis. According to tanker tracking data, nearly 14 million barrels of crude oil was loaded on seven supertankers inside the Gulf on Sunday.