Oil prices drop 2.5% as Middle East export recovery eases supply fears

Global oil prices dropped on Tuesday as market attention shifted toward increasing crude exports from the Middle East, tempering concerns over supply tightness. Brent crude futures fell by $2.69, or 2.6%, to settle at $102.59 per barrel, while U.S. West Texas Intermediate (WTI) closed at $89.38, down $3.22 or 3.5%. Monthly gains remain intact Despite the daily decline, both benchmarks are positioned to end the month in positive territory. Brent crude is currently on track for a monthly gain of approximately 13%, supported by geopolitical tensions earlier in the period. WTI is heading toward a 4% rise for the month, according to market data reported by WAM on Wednesday, 30 September. Export recovery shifts market sentiment The price correction follows reports of stabilizing crude flows from major Middle Eastern producers. The recovery in export volumes has provided a buffer for global markets, which had previously priced in a higher risk premium. Investors are now weighing these supply increases against broader economic indicators and demand forecasts for the final quarter of the year. This price movement matters to UAE stakeholders and regional energy markets as it signals a transition from supply-driven volatility to a more balanced market outlook. The trigger for this specific update was the official settlement of futures contracts on Tuesday evening, reflecting a 2.5% overall slide in the energy sector. Outlook for October Market participants are now monitoring upcoming…