Oil slips 1% as Iran diplomacy eases supply fears
USO•Oil prices fell about 1% as diplomatic talks involving Iran, Saudi Arabia, Turkey and Pakistan eased supply fears. Brent was down 0.86% at $114.81 a barrel, while U.S. West Texas Intermediate fell 0.86% to $100.88.
1. Prices edge lower
Brent crude futures fell $1, or 0.86%, to $114.81 a barrel, while U.S. West Texas Intermediate declined 88 cents, or 0.86%, to $100.88. Both benchmarks fell about 1% early in Tuesday’s session.
2. Diplomacy and supply risks
Saudi Arabia, Turkey and Pakistan held talks with Iranian officials in Tehran on Monday, and the four countries agreed to continue discussions on peace and security. Sugandha Sachdeva of SS WealthStreet said renewed diplomatic efforts raised hopes of a potential breakthrough in negotiations between the United States and Iran. Brent had climbed above $117 last week, its highest level since April, after Iranian attacks on tankers near the Strait of Hormuz.
3. Shipping and export pressures
Renewed attacks by Iran-aligned Houthis on Saudi Arabia underscored the fragile outlook. October was the worst month for attacks on commercial shipping in the Strait of Hormuz and nearby waterways since 2017, according to data cited from a Washington-based think tank. Gulf crude exports fell for a fourth straight week, and flows through the strait were about 60% of normal; global distillate inventories were nearly 5% below their five-year average, ANZ Research said.
