Oil prices settle lower as diplomacy hopes offset some Mideast supply concerns
USO•Oil prices fell on Thursday, with Brent settling down 44 cents, or 0.38%, at $114.88 a barrel and WTI down 78 cents, or 0.76%, at $102, as hopes for US-Iran peace talks offset some supply concerns.
1. Prices retreat
Brent crude futures settled down 44 cents, or 0.38%, at $114.88 a barrel. US West Texas Intermediate futures settled down 78 cents, or 0.76%, at $102. Both benchmarks fell more than $2 earlier in the session, reversing some of Wednesday’s gains.
2. Diplomacy and supply risks
Hopes for renewed US-Iran negotiations weighed on prices, while reports of attacks and continued Houthi missile activity helped oil recover some losses later in the session. Qatari mediators presented Iran with a new draft deal to end the war, but a senior Iranian official dismissed it as unacceptable ideas that did not amount to an offer.
3. Russian output and inventories
Expectations of higher Russian crude and diesel production also limited price gains. JPMorgan analysts said Russian refinery runs rebounded by 350,000 barrels a day last week to 4 million barrels a day. US crude and distillate inventories fell in the week ended October 23, while gasoline stockpiles rose, the Energy Information Administration said.
