Oil falls as Middle East talks outweigh concern over fresh strikes
USO•Oil futures fell, with Brent down 0.86% to $114.81 a barrel and U.S. West Texas Intermediate down 0.77% to $100.98, as Middle East peace talks drew attention despite renewed attacks and supply risks.
1. Oil prices retreat
Brent crude futures fell $1 to $114.81 a barrel by 1311 GMT, while U.S. West Texas Intermediate dropped 78 cents to $100.98. Brent had risen above $117 last week, its highest since April, and touched $117 on Monday.
2. Talks and attacks
Iran, Saudi Arabia, Turkey and Pakistan agreed to continue talks aimed at strengthening cooperation in peace and security, Iranian state media said. The Houthis said they had struck Saudi Arabia’s Ras Tanura oil refinery with a ballistic missile. October was the worst month for attacks on commercial shipping in the Strait of Hormuz and nearby waterways since tracking began in 2017.
3. Supply risks remain
UBS expects Brent to stay near $110 a barrel through year-end, revising its previous year-end forecast of $100, citing volatile Middle East supply and geopolitical uncertainty. The bank said vessel attacks had increased even as traffic through the Strait of Hormuz rose, and warned risks could become more acute if U.S. naval support wavers.
