Oil prices fall as peace hopes offset fears of growing Middle East conflict
USO•Brent fell 0.7% to $114.50 a barrel and U.S. WTI fell 1.0% to $101.74 as hopes for peace talks eased concerns about Middle East supply disruptions. U.S. crude stocks fell 1.9 million barrels, while gasoline stocks rose 3.9 million barrels.
1. Oil prices retreat
Oil prices fell on Thursday, paring gains from the previous day, as hopes for peace talks offset concerns about supply disruptions from escalating conflict in the Middle East. Brent futures declined 82 cents to $114.50 a barrel, while WTI futures fell $1.04 to $101.74.
2. Conflict and diplomacy
JD Vance reportedly sought to revive peace negotiations by sending a letter to Iranian Security Council chief Mohsen Rezaei. The Saudi-led coalition said it destroyed a Houthi ballistic missile fired toward the kingdom’s eastern region, while Qatari mediators presented Iran with a new draft deal to end the war with the United States and Israel; a senior Iranian official called the ideas unacceptable.
3. U.S. inventory data
The Energy Information Administration said crude stocks fell 1.9 million barrels in the week ended October 23, compared with analysts’ forecast for a 15,000-barrel build. Gasoline stocks rose 3.9 million barrels, against expectations for a 900,000-barrel draw.
