NEW DELHI/TOKYO: Oil prices fell 1 percent on Thursday as recovering crude exports from the Gulf and a ​surprise rise in US inventories eased supply concerns, while investors weighed renewed ‌US-Iran diplomatic efforts to end their conflict in the Middle East.

Brent crude futures fell 1.1 percent to $96.92 a barrel by 07:20 a.m. Saudi time, and US West Texas Intermediate crude dropped 1.4 percent to $89.18 a barrel.

Both benchmarks rose about $1 ​a barrel on Wednesday. Brent recorded a monthly gain of around 14 percent in ​September, its biggest since July, while WTI increased by about 5 percent on ⁠the month.

“Oil’s near-term bias remains negative as recovering shipments from the Gulf region, resumed ​Saudi exports through Yanbu and a buildup in US inventories ease supply concerns,” said Sugandha ​Sachdeva, founder of SS WealthStreet, a New Delhi-based research firm.

Saudi Arabia resumed oil tanker loadings from Yanbu, Reuters reported on Tuesday, after earlier restarting operations on its East-West Pipeline.

Meanwhile, US crude inventories rose by 922,000 barrels ​to 427.3 million barrels in the week ended Sept. 25, the Energy Information Administration ​said, compared with expectations in a Reuters poll for a 264,000-barrel draw.

“Renewed US-Iran diplomatic engagement could further ‌reduce ⁠the geopolitical risk premium, although a breakthrough remains uncertain,” Sachdeva said.

Iran said on Wednesday it had received a US response to its latest proposal to resurrect the collapsed ceasefire in the Gulf.

US President Donald Trump denied reports by Axios and CNN, however, that cited US officials ​as saying he was ​willing to give ⁠Iran sanctions relief and release frozen Iranian funds in return for “concrete” steps by Tehran on its nuclear program.

Goldman Sachs estimates Gulf oil ​exports, including “dark exports” involving ships operating with their location transponders turned ​off, have ⁠recovered to 23.3 million barrels per day over the last week, in line with their 2025 average, as exports doubled in September, it said in a note on Tuesday.

Also, OPEC+ oil-producing ⁠countries are ​likely to keep their oil production targets steady for ​November when they meet on Sunday, two people with knowledge of the matter told Reuters.