NEW YORK, United States – Oil prices fell on Thursday, September 17, but remained above $100 a barrel as reports that Saudi Arabian crude could continue reaching global markets eased concerns over a potential energy supply shortage. Lower oil prices also helped Wall Street recover, while gold edged higher as the US dollar weakened.
West Texas Intermediate (WTI) crude for October delivery fell 52 cents to close at $101.91 a barrel. Brent crude for November delivery dropped $1.01 to settle at $104.82 a barrel. Saudi Arabia and Iran-backed Houthi forces in Yemen exchanged fresh cross-border attacks on Thursday, adding to concerns about the wider impact of the Middle East conflict on global energy supplies. Supply worries have intensified since the United States and Israel launched attacks on Iran in February.
However, oil prices came under further pressure after reports that Saudi Arabia had offered to supply additional crude to Asian refineries. The shipments could reportedly be transferred from ship to ship offshore near Oman’s Sohar port, helping offset disruptions caused by attacks on the East-West oil pipeline supplying crude to the Red Sea. Brent crude had already fallen about $3 a barrel a day earlier, while Thursday’s decline pushed WTI to its lowest level since September 11.
US stocks rebounded on Thursday, supported by the decline in oil prices, lower US Treasury yields and stronger labour-market data. Investors also looked beyond the Federal Reserve’s latest interest-rate decision. The Dow Jones Industrial Average gained 316.14 points, or 0.61%, to close at 51,778.04. The S&P 500 rose 85.95 points, or 1.14%, to 7,637.76, while the Nasdaq Composite climbed 439.87 points, or 1.69%, to 26,418.30.
On Wednesday, the Federal Reserve’s policy-setting committee unanimously raised its policy rate for the first time since July 2023. The Fed said it remained committed to bringing inflation back to its 2% target more quickly, signalling the possibility of further monetary tightening later this year. The retreat in oil prices provided some relief for investors because lower energy costs could reduce pressure on inflation. Gold prices also edged higher on Thursday, supported by a weaker US dollar as investors assessed the Fed’s latest interest-rate move. US gold futures for December delivery rose 0.3% to close at $4,332.80 an ounce.
