Oil prices fell by more than $1 a barrel on Thursday amid hopes of an end to the conflict in the Middle East and the war between Russia and Ukraine.
By 01:41 GMT, Brent crude futures had dropped $1.14, or 1.2%, to $91.62 a barrel. US West Texas Intermediate (WTI) crude futures also declined $1.04, or 1.2%, to $85.49.
Brent crude rose around 1.4% on Wednesday, while US crude gained 0.6%, following both benchmarks’ slide to their lowest levels in two months during the previous session.
Hiroyuki Kikukawa, chief analyst at Nissan Securities Investment, said markets were declining amid expectations that behind-the-scenes efforts were underway to secure a ceasefire between Russia and Ukraine, alongside reduced concerns about an escalation of the war with Iran ahead of next week’s US-China summit.
“However, given the uncertainty surrounding the Strait of Hormuz, a significant market decline is unlikely,” Kikukawa added.
Russian and Ukrainian negotiators agreed on a major prisoner exchange during two days of talks in Abu Dhabi that concluded on Wednesday. US mediators said disagreements remained over other key issues, including territorial matters.
Ukrainian President Volodymyr Zelensky said Kyiv hoped to achieve tangible results towards ending the war this year.
Meanwhile, Iranian Supreme National Security Council Secretary Ali Larijani?
Iran’s Supreme National Security Council Secretary Mohsen Rezaei said in an interview with Al Mayadeen that Tehran would not allow even a single particle of enriched nuclear material to leave the country. He also warned of consequences if the United States launched further strikes.
Washington said nuclear issues must be included in any initial negotiations with Iran aimed at ending the eight-month-long war, while US officials played down the need for additional military strikes.
Crude oil production across OPEC+ countries surged in October, driven by a sharp increase in Saudi output, despite continued disruption to shipments through the Strait of Hormuz.
Market sources, citing data from the American Petroleum Institute (API), said US crude inventories increased by 9 million barrels last week.
Official figures from the US Energy Information Administration (EIA) are due on Thursday, following a one-day delay caused by a national holiday in the United States on Wednesday.
Source: Reuters
