Oil prices fall by more than one percent as Iran-US diplomatic activity intensifies
Fuel oil prices have fallen on world markets as diplomatic activity to end the ongoing war between Iran and the United States intensifies. Prices of Brent and West Texas Intermediate (WTI) on international markets have fallen by more than one percent.
The fall came while talks between Iranian and Qatari officials continued for a third consecutive day. International news agency Reuters reported the information.
On Monday (November 2) at 0011 GMT, the price of Brent crude fell by $1.59, or 1.40 percent, to $111.84 a barrel. At the same time, WTI fell by $1.56, or 1.50 percent, to $102.56.
According to the report, Brent crude had reached its highest level in six months in late October. Fears that the Iran-US conflict could escalate again after the US midterm elections had created concern in the market.
Analysts believe the market saw some correction on Monday after last week's big price rise. Tim Waterer, chief market analyst at KCM Trade, said the possibility of diplomatic progress and the absence of a major military escalation over the weekend had eased some of the immediate pressure on oil prices. He also believes Brent could reach $120 a barrel if tensions over Iran rise after the midterm elections.
Iranian Foreign Minister Abbas Araghchi said on Sunday that their goal is to continue the ongoing talks with Qatari mediators. He also said Iran is prepared for both situations, defence and diplomacy.
Meanwhile, attacks on oil tankers passing through the Strait of Hormuz are raising global fuel and transport costs. Despite the attacks, Saudi Arabia's crude oil exports in October increased compared with the previous month, according to two shipping monitoring firms.
OPEC Plus, the alliance formed with Russia and allied countries, has kept its oil production target for December unchanged. The alliance remains under pressure as exports have been disrupted by the Iran war. A change in production policy may be considered next year.
