Oil prices fell sharply on Tuesday as signs of improving crude exports from the Middle East eased some supply concerns, although the market remained on track for monthly gains due to ongoing disruptions tied to the U.S.-Israeli war with Iran. Brent crude settled at $102.59 a barrel, down $2.69, or 2.6%, while WTI fell $3.22, or 3.5%, to $89.38.

Despite Tuesday’s decline, Brent was headed for a monthly gain of roughly 13%, while WTI was up about 4% for September. The recent pullback reflects growing expectations that more Middle Eastern crude will reach the market as damaged infrastructure is brought back online.

Saudi Arabia resumed tanker loadings at its Red Sea port of Yanbu after restarting flows through the East-West Pipeline, according to trade sources and shipping data. The development improves Saudi Arabia’s ability to move crude outside the Strait of Hormuz and provides additional flexibility for regional exports.

Kpler data showed crude exports from Middle Eastern producers recovering to 16.328 million barrels per day in September, the highest level since the war with Iran began in late February. Rising exports are helping offset some of the supply losses caused by disruptions elsewhere in the region.

Diplomatic developments remain another factor for traders. President Trump rejected reports that the U.S. was prepared to ease sanctions or release frozen Iranian funds in exchange for nuclear-related concessions, saying he had offered Iran nothing to end the war. U.S.-Iran discussions are nevertheless continuing, keeping the possibility of a broader agreement in focus.

The refined-products market remains tight, particularly for diesel. European diesel futures edged lower Tuesday, while U.S. diesel futures gained 2.6%. The White House has also urged European countries to release more diesel from emergency inventories in an effort to increase available supplies and ease prices.

The administration is also considering regulatory changes that would expand the use of red-dyed diesel, potentially allowing some buyers to avoid the federal fuel tax. The proposal has emerged as an alternative to a broader U.S. diesel export restriction, which has been under discussion as officials look for ways to reduce domestic fuel prices.

• Where: The Gaylord Opryland Hotel
• Attending: Brian Baker (239.297.4519)
• Conference Website

• Where: The Westin Galleria Dallas
• Attending: David Cohen (954-729-4774), and Curtis Chandler (239-405-3365)
• Conference Website

• Where: The Westin Galleria Dallas
• Attending: Brian Baker (239.297.4519)
• Conference Website