Global oil prices fell on Wednesday after US President Donald Trump said American and Iranian representatives held what he described as “very good” and “very productive” talks at the United Nations.
Brent crude, the international benchmark, fell to $98.91 per barrel, while US West Texas Intermediate crude dropped to $89.93 per barrel in early Asian trading. Both benchmarks moved below the $100 mark after repeatedly trading above it since the Middle East conflict began in February.
The decline followed Mr Trump’s comments that the three-hour meeting between US and Iranian representatives had gone well and that another meeting was expected soon.
“The three-hour meeting was very good, very productive, and they have another one scheduled in the very near future,” Mr Trump said while meeting Ukrainian President Volodymyr Zelensky.
His comments came only hours after he addressed the United Nations and said he faced a major decision over whether to reach an agreement with Iran or take further military action.
Iran conflict keeps Oil markets on edge
The movement in oil prices reflects continued uncertainty over the conflict involving the United States, Israel and Iran and its effect on global crude supplies.
Iran has kept the Strait of Hormuz closed amid the conflict, while the United States has maintained a counter-blockade of Iranian ports. The waterway is a critical route for global energy shipments, making developments around it particularly important to oil traders.
Analyst Stephen Innes of Quintex Intel said the US-Iran meeting was significant because it shifted market expectations from focusing entirely on further escalation toward the possibility of a diplomatic process, although he noted that a final agreement remained uncertain.
Saudi Arabia restarts key pipeline
The decline in oil prices also coincided with reports that Saudi Arabia had restarted operations along its East-West Pipeline, an important alternative route for transporting crude when shipments through the Strait of Hormuz are disrupted.
Saudi Arabia has increasingly relied on the pipeline to bypass the Strait during the conflict. Reports indicated that the kingdom was also preparing to resume exports through the port of Yanbu later in the week.
Changes in international crude prices can affect the economics of Nigeria’s petroleum market, particularly because crude oil remains central to the country’s foreign exchange earnings and the pricing environment for refined petroleum products.
However, a fall in global crude prices does not automatically translate into an immediate reduction in petrol prices in Nigeria. Domestic pump prices are also influenced by exchange rates, refining and distribution costs, taxes, margins and the structure of the local petroleum market.
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