Oil prices fall as diplomacy hopes outweigh escalation fears in Middle East war
USO•Brent crude fell 1.38% to $113.73 a barrel and U.S. WTI dropped 2.03% to $100.69 as hopes for U.S.-Iran peace talks weighed on prices. Supply concerns remained after regional attacks and disruptions, while Russian refinery runs rebounded by 350,000 barrels per day to 4 million.
1. Prices fall on diplomacy hopes
Oil prices fell on Thursday, paring gains from the previous day, as hopes for peace talks between the United States and Iran eased concerns about supply disruptions. Brent was down $1.59 to $113.73 a barrel, while WTI fell $2.09 to $100.69 by 11:45 a.m. EDT.
2. Regional supply risks persist
The Wall Street Journal reported that U.S. Vice President JD Vance sent a letter to Iran’s Supreme National Security Council head, Mohsen Rezaei, seeking to revive negotiations. Qatari mediators presented Iran with a new draft deal, but a senior Iranian official called the ideas unacceptable. Attacks and threats involving the Houthis and Iran continued to weigh on the outlook for regional supply.
3. Russian output rebounds
JPMorgan analysts said Russian refinery runs rebounded by 350,000 barrels per day last week to 4 million barrels per day, with no further confirmed attacks on Russian refining infrastructure since October 15. U.S. crude and distillate inventories fell in the week ended October 23, while gasoline stocks rose, the Energy Information Administration said.
