Brent falls 1.40% to $111.84 a barrel
By the AFREEQUE newsroom, based on MyJoyOnline
Brent lost 1.40% to $111.84 a barrel and US crude 1.50% to $102.56 as markets responded to hopes of diplomatic progress in the war between the United States, Israel and Iran. The decline came on Monday after three days of talks between Iranian and Qatari officials, while prices remain sensitive to risks in the Strait of Hormuz, according to Reuters.
Brent lost 1.40%, to $111.84 a barrel, on Monday at 0011 GMT, while US WTI crude fell 1.50%, to $102.56, MyJoyOnline reports. Prices fell after three consecutive days of talks between Iranian and Qatari officials on an agreement aimed at ending the war between the United States, Israel and Iran.
Tim Waterer, chief market analyst at KCM Trade, attributed the decline to a correction after the previous week’s gains and continued hopes of diplomatic progress. He also noted the absence of any major military escalation over the weekend. The market nevertheless remains alert to a possible rise in tensions after Tuesday’s US midterm elections, which could push Brent towards $120.
Iranian Foreign Minister Abbas Araqchi said on Sunday that talks with Qatar aimed to continue consultations with Qatari mediators. He said Tehran was ready both for defence and diplomacy. Attacks on tankers travelling through the Strait of Hormuz are also contributing to higher energy and shipping costs.
On 30 October, Brent reached $117.64, its highest level in six months. The decline came as Qatar relaunched talks with Iran on 1 November. On Sunday, Opec+ maintained its production targets for December.
