Oil Extends Losses Below $99 as Supply Prospects Grow

Key Moments

Oil Price Retreat and Market Impact

Danske Research Team reports that Brent crude is trading close to USD 98/bbl following six straight sessions of losses, with oil identified as the main intraday catalyst for broader financial markets. The continued slide in prices is closely linked to supply-side headlines and geopolitical developments.

In earlier trading, Brent dropped to around USD 99/bbl, marking its fifth consecutive daily decline and, according to the commentary, “the longest losing streak since August 2025, as Saudi Arabia moved to restart the East-West pipeline and the US flagged progress in Iran talks.” This pressure on Brent has also weighed on global risk sentiment and fixed income markets.

Saudi East-West Pipeline Restart in Focus

The restart of Saudi Arabia’s East-West pipeline is a central factor behind the recent move in Brent prices. As noted in the research commentary, “In commodities, Brent crude is trading around USD 98/bbl this morning, a sixth consecutive session of declines, as Saudi Arabia is in the process of restarting its East-West pipeline.”

The pipeline-related supply signal has contributed to the perception of improving availability, which is helping to push prices lower over consecutive sessions.

US-Iran Talks and Geopolitical Backdrop

Alongside the supply story, developments in US-Iran relations are also influencing oil and broader risk assets. The commentary notes shifting diplomatic dynamics and their implications for the energy market.

“Away from the rhetoric, however, US and Iranian officials held their first talks since June through mediators on the sidelines of the assembly. While no agreement was reached, both sides expect further discussions.”

Tensions and strong language remain a feature of the political environment: “President Trump used his UN speech to warn that he could ‘annihilate the Islamic Republic’ if no deal is reached and said a peace agreement is unlikely before the November mid-terms.”

Strait of Hormuz Outlook

Potential changes in the status of the Strait of Hormuz are also highlighted in the commentary. The status of this key chokepoint is directly tied to the ongoing negotiations and US policy stance on Iran.

“Tehran said it would be prepared to reopen the Strait of Hormuz within seven days if the US lifts its blockade on Iranian ports. For now, the comments point to limited prospects of traffic through the Strait of Hormuz normalising.”

These developments together – the Saudi pipeline restart and indications of movement in US-Iran talks – are exerting pressure on Brent prices and shaping sentiment across global markets.