Oil prices drop more than $1 as hopes for Iran, Ukraine peace talks pressure markets
USO•Brent fell $1.14, or 1.2%, to $91.62 a barrel, while U.S. West Texas Intermediate dropped $1.04, or 1.2%, to $85.49. Hopes for progress in peace talks and a 9-million-barrel increase in U.S. crude stocks weighed on prices.
1. Prices decline
Oil prices fell more than $1 on Thursday as hopes for progress in peace talks over the Middle East and Russia-Ukraine wars pressured the market. Brent futures lost $1.14, or 1.2%, to $91.62 a barrel, and WTI fell $1.04, or 1.2%, to $85.49.
2. Peace talks and supply
Russian and Ukrainian negotiators agreed to a major prisoner exchange during two days of talks in Abu Dhabi, though U.S. mediators said differences remained on major issues, including territory. Iran's security chief said the country would not allow enriched nuclear material to leave and warned of consequences if the United States launched new strikes. OPEC+ crude production jumped in October, led by higher Saudi output.
3. U.S. inventory data
U.S. crude stocks rose by 9 million barrels in the latest week, market sources said, citing American Petroleum Institute data. The Energy Information Administration's official figures were due on Thursday.
