Brent falls as Iran's president discusses mediation with Pakistani army chief
USO•Brent settled down 76 cents, or 0.69%, at $108.79 a barrel after reaching a five-month high of $111.99. Traders weighed mediation discussions against continued Houthi attacks and reports of vessel attacks in the Gulf.
1. Oil prices retreat
Brent crude futures settled down 76 cents, or 0.69%, at $108.79 a barrel on Tuesday after reaching $111.99, a five-month high. The November US West Texas Intermediate contract settled down $1.87, or 1.8%, at $101.79; the more active December contract settled down 72 cents at $97.82.
2. Mediation and attacks
Iranian President Masoud Pezeshkian discussed mediation efforts and regional developments with Pakistan's army chief, Field Marshal Asim Munir, in Tehran, Nournews reported. The meeting came as Yemen's Houthis said they had attacked Saudi energy, airport and military targets; Saudi authorities did not immediately confirm the claims, and they could not be independently verified. Kpler said at least 18 vessels were reportedly attacked over two weeks.
3. Supply concerns
ING analysts said oil prices remained well-supported, with the market pricing in a significant risk premium given the volatility. US officials said they were working with domestic refiners to process more crude and pushing shuttered refineries to reopen. A Reuters poll found analysts expected US crude inventories to have fallen by about 800,000 barrels in the week ended October 16.
