FX.co ★ Crude Oil Pares Gains

Crude oil pared earlier gains to trade near $94 a barrel on Monday after the reopening of a key Saudi export route eased some supply concerns. Saudi Arabia resumed crude shipments through its East–West pipeline following repairs to damage caused by drone attacks earlier this month. Flows through the system are now about 3.5 million barrels per day, restoring a crucial alternative route for Saudi exports.

At the same time, markets remain focused on diplomatic efforts to reopen the Strait of Hormuz, with mediators expected to hold separate talks with US and Iranian officials on Monday or Tuesday. Oil prices have been highly sensitive to developments around these negotiations, which have repeatedly raised hopes of a breakthrough only to stall again. Earlier, Tehran said it continues to back the proposal previously rejected by US President Donald Trump.