Brent falls 4.43% to $108.40 on diplomatic hopes
By the AFREEQUE newsroom, based on Le Matin
January Brent crude fell 4.43% to $108.40 a barrel, while December WTI fell 4.38% to $99.56. The decline came as Washington and Tehran negotiated under Qatari mediation, following reports that Donald Trump wanted to let diplomacy take its course, AFP reports.
Brent crude for January delivery fell 4.43% to $108.40 a barrel at about 9.45am GMT on 2 November, amid hopes of renewed negotiations between Washington and Tehran, according to AFP. The West Texas Intermediate (WTI), the US benchmark for December delivery, fell 4.38% to $99.56.
Arne Lohmann Rasmussen, an analyst at Global Risk Management, linked the decline to reports that US President Donald Trump wanted to give talks with Iran more time. US media outlet Axios reported on Sunday that Trump and Israeli Prime Minister Benjamin Netanyahu had discussed on Saturday the timing of a possible intensification of military operations. According to US and Israeli sources cited by Axios, Netanyahu argued for a strike after the US elections on Tuesday 3 November, while Trump reportedly preferred to let negotiations continue.
Talks between Tehran and Washington are taking place under Qatari mediation. Iranian Foreign Minister Abbas Araghchi said on Sunday that he hoped the other side would favour the diplomatic route. Rasmussen nevertheless said the signs of openness could be tactical ahead of the midterm elections, as the war is unpopular in the United States and rising fuel prices are weighing on consumers.
The oil market reached a six-month high on 30 October, with Brent at $117.64, before an initial fall of 1.40% to $111.84 on 2 November. The latest decline follows this fall in Brent to $111.84. In Russia, Moscow also said that Ukraine had resumed strikes on refineries after a pause of about two weeks. According to ING analysts, the interruption had brought the gap between crude oil and diesel to its lowest level since early October; further attacks could halt this decline.
