Economy
Easing Geopolitical Fears, Oversupply Worries Weaken Oil Prices
By Adedapo Adesanya
Oil prices fell more than $1 per barrel on Thursday morning on hopes of an easing of the Middle East conflict, which will reduce the risk premium in crude markets, while Russian and Ukrainian peace talks advanced.
Brent futures were down $1.47 or 1.58 per cent to $91.29 a barrel, while US West Texas Intermediate (WTI) crude futures slipped $1.24 or 1.43 per cent to $85.29 per barrel.
Markets are falling on expectations that behind-the-scenes efforts are underway to secure a ceasefire between Russia and Ukraine and that it is unlikely the Iran war would escalate ahead of the US-China summit next week.
Earlier, Iran’s top security official, Mr Mohsen Rezaei, denied that talks with the US are under way and called reports of a recent meeting in Qatar “pure lies” spread to push down oil prices.
He also said Iran will not allow even a single particle of enriched nuclear material to leave the country and there will be consequences if the US launches new strikes.
Also, Iranian President Masoud Pezeshkian accused the US of conducting diplomacy through threats, and Secretary of State Marco Rubio has rejected Iran’s demand for war reparations.
The US has said nuclear issues must be part of any initial negotiations with Iran aimed at ending the eight-month-old war, while US officials downplayed the need for further military strikes.
Russian and Ukrainian negotiators agreed to a major prisoner exchange at two days of peace talks in Abu Dhabi that ended on Wednesday, although US mediators said differences remained on other major issues, including territory.
Crude production from the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) rose in October, driven by higher Saudi Arabian output despite ongoing shipping disruptions through the Strait of Hormuz.
US crude stocks rose by 9 million barrels in the latest week, data from the American Petroleum Institute showed. Official data from the US Energy Information Administration is due on Thursday, delayed a day due to a US national holiday on Wednesday.
