Crude prices decline as Saudi infrastructure repairs ease supply concerns, though analysts maintain a bullish outlook due to persistent physical market tightness and rising speculative bets.
WTI fell 1.6% but tight physical markets and rising speculative bets suggest underlying strength.
Brent settled lower but analysts note tight markets and reduced geopolitical risk premium, with bullish positioning rising.
Aramco expects to partially restore its East-West pipeline within days, easing supply concerns but also indicating operational disruption from attacks.
Brent and WTI crude prices retreated for a fourth consecutive session as Saudi Aramco moves to restore its East-West pipeline. While the immediate geopolitical risk premium fades, analysts warn that physical markets remain exceptionally tight, with speculative bullish positioning reaching its highest level since May.
Prices are retreating as the geopolitical risk premium fades following progress in restoring Saudi Arabia's East-West pipeline, which helps bypass the Strait of Hormuz.