Oil Prices Fall More Than 3% on Qatar-Mediated Talks Optimism
Oil prices fell more than 3% in Monday's global market trading amid traders' optimism over Qatar-mediated negotiations to end the war and continued diplomatic consultations, with key market benchmarks facing declines.
Brent crude futures fell $3.68, or 3.2%, to $109.75 per barrel. US West Texas Intermediate (WTI) crude also fell $3.43, or 3.3%, trading at $100.69 per barrel.
Brent crude ended October at its highest level in the past six months.
Seyed Abbas Araghchi said on Sunday, referring to the continuation of consultations with Qatari mediators regarding the two-day Strait of Hormuz plan: “Consultations are ongoing, but we have not yet reached a definitive conclusion, as this result depends on the answers the other side gives to our questions.”
Tim Waterer, chief market analyst at KCM Trade, said: “Oil, after significant gains last week, is witnessing a technical price correction (pullback) this morning.” He added: “Continued hopes for some kind of diplomatic progress, along with the absence of any serious military escalation over the weekend, has for now reduced the immediate intensity of pressure on prices.”
However, Waterer noted that the market remains vigilant about the possibility that after the US midterm elections, tones and statements regarding Iran could become harsher, pushing Brent crude prices toward $120.
According to a Reuters report, the Organization of the Petroleum Exporting Countries and its allies, including Russia (OPEC+), kept December production targets unchanged on Sunday, confirming expectations that no further change in the group’s production policy will occur until next year, as the group continues to grapple with export disruptions caused by the war against Iran.