Oil falls almost $2 as Middle East talks help ease supply worries
USO•Oil futures settled down nearly $2 a barrel on Tuesday, while Brent remained near six-month highs amid shipping disruptions and uncertainty over a deal to end the war with Iran.
1. Oil settles lower
Brent crude futures settled down $1.93, or 1.67%, at $113.88 a barrel, while U.S. West Texas Intermediate settled down $1.86, or 1.83%, at $99.90. Talks among Iran, Saudi Arabia, Turkey and Pakistan are set to continue, but an agreement to end the war remains elusive.
2. Supply risks persist
Yemen's Iran-aligned Houthis said they struck Saudi Arabia's Ras Tanura refinery, while attacks on commercial shipping near the Strait of Hormuz reached their highest level since 2017. UBS expects Brent to stay near $110 a barrel through year-end, up from its previous $100 forecast; Russian crude exports from Baltic and Black Sea ports are forecast to fall next month as domestic refiners increase output.
