Brent and West Texas Intermediate crude oil futures fell more than 1 percent on Monday (2/11) after Iranian and Qatari officials resumed talks for a third consecutive day aimed at ending the war between the United States and Israel against Iran. Brent dropped $1.59, or 1.40 percent, to $111.84 per barrel in early trading at 00.11 GMT. WTI fell $1.56, or 1.50 percent, to $102.56 per barrel.
Diplomacy eases pressure
Tim Waterer, chief market analyst at KCM Trade, said remaining hopes for diplomatic progress, plus the absence of significant military escalation over the weekend, had eased some immediate price pressure for the time being, according to Reuters.
Iran’s Foreign Minister Abbas Araqchi said on Sunday (1/11) that negotiations were ongoing and showing progress, aimed at continuing consultations with mediator Qatar. He said Tehran was ready to pursue both defensive and diplomatic paths.
Supply risks linger
Brent closed October trading at its highest level in six months, with markets worried the conflict could re-escalate.
Saudi Arabia increased crude exports in October compared with September, according to two of three tanker-tracking firms, despite Houthi attacks on its energy infrastructure. OPEC+ kept its December production target unchanged on Sunday (1/11), in line with market expectations of no further policy adjustments until next year.
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Source: OPEC
