Oil prices fall 3% as Iran talks continue
Key points
- Brent crude fell 3% to $110 per barrel, while US WTI dropped 3.4% to $100.62.
- Diplomatic discussions between Iran and Qatar eased immediate concerns about further military escalation, following October's six-month high for Brent.
- OPEC+ maintained December production targets, while tanker attacks and uncertainty surrounding the Strait of Hormuz continue to influence oil supply risks.
Brent crude futures fell 3% to $110 per barrel on Monday, November 2, while US West Texas Intermediate (WTI) dropped 3.4% to $100.62 as Iranian and Qatari officials continued diplomatic talks aimed at ending the US-Israeli war on Iran.
The decline followed a strong rally that pushed Brent to its highest monthly closing level in six months at the end of October, amid concerns about renewed military escalation after Tuesday's US midterm elections.
"Oil is seeing a technical pullback this morning after last week's strong gains," said Tim Waterer, chief market analyst at KCM Trade.
At 0712 GMT, Brent had fallen $3.43, while WTI declined $3.50, as hopes of diplomatic progress and the absence of significant military escalation over the weekend eased immediate market concerns.
Despite the decline, tanker attacks in the Strait of Hormuz continue to threaten shipping routes and energy supplies, while DBS Bank analyst Suvro Sarkar said market reactions could remain capped around $120 per barrel.
At the reported snapshot, Brent traded at $110 and WTI at $100.62.
Iranian Foreign Minister Abbas Araqchi said the discussions with Qatari mediators were ongoing and progressing, while Saudi Arabia increased October crude exports compared with September despite attacks on its energy infrastructure, according to two ship-tracking companies.
OPEC and its allies, known as OPEC+, maintained December production targets without changes, with further policy adjustments expected next year as the group continues to manage export disruptions linked to the Iran conflict.
