Global oil prices moved lower on Thursday, November 12, as increased crude production across the Middle East added pressure to the market. Brent crude futures for January delivery fell by around 1.54% to $91.22 per barrel, while US West Texas Intermediate (WTI) declined by approximately 1.5% to $85.26. The fall came after Brent recorded gains in the previous trading session. Higher supplies and expectations of easing regional tensions have influenced market sentiment. Traders are closely monitoring production levels and developments in the Middle East.
Saudi Arabia and Iraq Increase Oil Production
Rising output from major Gulf producers is one of the key reasons behind the recent decline in crude prices. Saudi Arabia reported a 26% increase in oil production during October, reaching one of its highest monthly levels in recent years. Iraq also recorded a wartime production high, adding more supply to international markets. With additional crude becoming available while consumption remains relatively constrained, concerns about a possible supply surplus are growing. This imbalance has weakened price differentials and placed further pressure on oil benchmarks.
Gulf Exporters Find Alternative Shipping Routes
Middle East oil exports have moved closer to pre-war levels despite continued uncertainty around important shipping routes. Saudi Arabia has used its East-West pipeline to transport crude towards the Red Sea, reducing its dependence on the Strait of Hormuz. Ship-to-ship transfers have also helped exporters maintain deliveries to international buyers. However, security concerns remain, with reported attacks on tankers continuing to create uncertainty. These developments show how regional producers are adapting their export arrangements to maintain global supply.
US-Iran Tensions Continue to Influence Oil Markets
Diplomatic discussions between Washington and Tehran have made limited progress, leaving uncertainty over the future of the regional conflict. Disagreements remain over Iran's nuclear material, frozen assets and the US naval blockade. At the same time, expectations that tensions could ease have reduced some of the risk premium previously reflected in oil prices. Market participants will continue watching political developments alongside production and demand figures. Any major change in regional security or supply conditions could influence crude prices in the coming sessions.
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