Why oil prices fell

The increase in crude oil supplies in the Middle East's Gulf region and the prospect of a diplomatic solution to tensions between the United States and Iran have had a positive impact on oil prices in the international market.

According to the morning data on Wednesday (September 23), the global oil market is facing a decline in prices. At 7:19 am Bangladesh time, the price of international market benchmark Brent crude fell 7 cents to $99.18 per barrel. On the other hand, the price of WTI crude oil in the US market also fell 35 cents to $90.17.

US President Donald Trump on Tuesday (September 22) threatened to "destroy" Iran, but also said his envoys Steve Witkoff and Jared Kushner had held productive talks with Iranian mediators to end the war.

Trump said, "I think they have a lot of momentum to reach an agreement."

Oil markets have seen a major relief, with signs of normalization in oil supplies and diplomatic efforts to end a seven-month-long war. The price of international benchmark Brent crude fell below $100 again in late trading on Tuesday.

It is worth noting that this is the first time since September 8 that the price of branded oil has fallen below $100.

Tim Waterer, chief analyst at KCM Trade, said the market is now a little more optimistic about the global oil supply situation than it was a few weeks ago.

He said the meeting between US and Iranian representatives in New York had raised some hopes among traders about the possibility of talks. Despite the continued harsh rhetoric, including threats of destruction, the market is now weighing the possibility of talks.

Saudi Arabia resumed operations on Tuesday of its East-West oil pipeline leading to the Red Sea, three sources familiar with the matter said, in a sign of increased oil supplies from the Middle East.