Brent crude futures fell 1.93 dollars, or 1.67 percent, to close at 113.88 dollars per barrel on Tuesday, while US WTI dropped 1.86 dollars, or 1.83 percent, to settle at 99.90 dollars. The declines came a day after Iranian Supreme National Security Council head Mohsen Rezaei held talks with delegations from Saudi Arabia, Turkey and Pakistan, who agreed to continue negotiations. Rezaei then met Supreme Leader Mojtaba Khamenei.
Prices near six-month highs
Despite Tuesday’s pullback, oil stayed close to six-month highs. Tensions around Middle East shipping routes and the prolonged US-Israeli war against Iran have kept a premium in the market. Brent rose above 117 dollars last week, the highest level since April, after Iranian attacks on tankers near the Hormuz Strait.
A missile struck Saudi Arabia’s Ras Tanura refinery on Tuesday. Analysts said that while traffic through the strait had increased, incidents against ships had also risen, a combination that has kept risk premiums elevated even as diplomatic contacts continue.
Forecasts and supply shifts
Separately, Russian crude processing rose 25 percent in the second half of October compared with the start of the month, as refineries there ramp up output. That shift could reduce Russian seaborne crude exports from Baltic and Black Sea ports in November, tied to an agreement between Moscow and Washington.
Related: Oil slips as hopes grow for ending Iran war; Brent at $115.15 · Brent slips below $110 as US-Iran hostilities may ease
