Diplomatic negotiations mediated by Qatar have raised prospects for winding down the war, prompting Brent crude to slide to $108.64 and West Texas Intermediate to fall to $99.71. Iranian Foreign Minister Abbas Araqchi noted that consultations are advancing while emphasizing that Tehran stays prepared for both defense and diplomacy. Meanwhile, tanker tracking data revealed that Saudi Arabia increased its crude exports in October relative to September, defying ongoing Houthi strikes on domestic energy infrastructure. Analysts emphasize that despite the recent sell-off, risks of future price spikes persist due to enduring shipping hazards.
Key points
Diplomatic discussions involving Qatari intermediaries have temporarily eased immediate c…: Diplomatic discussions involving Qatari intermediaries have temporarily eased immediate concerns over severe Middle Eastern supply shortages.
Sustained threats to maritime routes and energy infrastructure ensure that significant up…: Sustained threats to maritime routes and energy infrastructure ensure that significant upward price risks linger across the market.
Goldman Sachs cautioned that Brent could climb to $140 by 2027 if regional output remains…: Goldman Sachs cautioned that Brent could climb to $140 by 2027 if regional output remains 3.5 million barrels daily below 2025 levels.
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LONDON, Nov 2 : Oil fell more than 4 per cent on Monday as talks between Iranian and Qatari officials on a deal to end the US-Israeli war on Iran raised hopes that Middle East supply disruptions could ease.
Iranian negotiators have left talks with Qatari mediators aimed at ending the war with the United States, and a draft proposal is being circulated with a follow-up meeting possible, an official briefed on the talks said on Monday.
"The new month brought with it renewed hopes of a breakthrough in the Iranian stalemate," said Tamas Varga of oil broker PVM.
Brent crude futures fell $4.79, or 4.2 per cent, to $108.64 a barrel by 1020 GMT while US West Texas Intermediate crude traded at $99.71, down $4.41 or 4.2 per cent.
Brent ended October at its highest in six months amid concerns that the US-Iran conflict could escalate again after Tuesday's US midterm elections.
"Lingering hopes of some form of diplomatic progress, combined with the absence of any meaningful military escalation over the weekend, have taken some of the immediate heat…
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