Original Coverage & Source Attribution: apacnewsnetwork.com
Noida, Nov 2 (APAC Media): Oil prices slipped during Asian trading on Monday as growing optimism over diplomatic efforts to bring an end to the U.S.-Israeli conflict with Iran eased immediate fears of further disruptions to global crude supplies.
Brent crude futures for January delivery fell 2.92% to $110 per barrel, while U.S. West Texas Intermediate (WTI) crude declined 3% to $103.10 per barrel as of 9:00 a.m. IST.
The decline came after oil prices recorded substantial gains in recent trading sessions. With no major escalation reported over the weekend and diplomatic negotiations continuing, some investors moved to book profits. Despite the latest pullback, both Brent and WTI crude contracts posted gains of nearly 15% in October.
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According to a report by Axios on Sunday, U.S. President Donald Trump told Israeli Prime Minister Benjamin Netanyahu during a phone conversation on Saturday that he wanted to allow diplomatic efforts more time before considering a resumption of military operations.
The report said Netanyahu was concerned about the approach and urged Washington to restart strikes soon after the U.S. midterm elections.
The possibility of further negotiations provided some relief to energy markets.
However, uncertainty surrounding the elections continued to weigh on investor sentiment, with Trump previously warning that military action could resume if diplomatic efforts failed.
Meanwhile, Iranian and Qatari officials continued discussions for a third consecutive day to find a resolution to the conflict. Tehran reiterated its willingness to pursue diplomatic solutions while maintaining its readiness to defend itself.
Qatar, meanwhile, was working to facilitate a proposal aimed at reopening the strategically important Strait of Hormuz.
The waterway remains a major source of concern for global energy markets. Attacks on oil tankers and restrictions on Iranian crude exports have disrupted shipping activity, driving up transportation and insurance costs.
On the supply front, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed to maintain existing production targets for December. The group is expected to hold off on further policy changes until next year as the conflict continues to affect regional oil exports.
Market analysts cautioned that the recent decline in crude prices may be short-lived if diplomatic efforts collapse. They warned that a renewed military escalation following the U.S. midterm elections could drive Brent crude prices to $120 per barrel.
Even if negotiations produce an agreement, analysts noted that a full recovery in oil supplies may take time, with the pace of restoring shipping operations and crude exports likely to play a crucial role in determining the direction of prices.
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Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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