Global oil prices fell by more than one percent on Thursday, November 12, as hopes for progress in Middle East peace efforts eased concerns about possible supply disruptions.
Brent crude futures dropped $1.14, or 1.2%, to $91.62 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude declined $1.04, or 1.2%, to $85.49.
The decline followed gains in the previous trading session, when both benchmarks recovered from recent two-month lows.
Investors are closely watching diplomatic developments involving Iran and Russia as markets assess the possibility of reduced geopolitical tensions.
Iran and Ukraine Peace Efforts Weigh on Markets
Expectations of a possible ceasefire between Russia and Ukraine have added pressure on oil prices.
Negotiators from both countries agreed to a major prisoner exchange after two days of US-mediated talks in Abu Dhabi. However, disagreements over territorial issues remain unresolved.
Meanwhile, traders expect the Iran conflict to avoid further escalation ahead of next week’s US-China summit.
These developments have eased some concerns about disruptions to global oil shipments, particularly through the strategically important Strait of Hormuz.
However, uncertainty surrounding the waterway continues to limit the possibility of a sharper decline.
Rising Oil Supply Adds Further Pressure
Higher production from OPEC+ countries has also contributed to the downward movement.
The group’s crude oil output increased in October, led by a significant rise in Saudi production despite ongoing shipping disruptions through the Strait of Hormuz.
Meanwhile, US crude inventories increased by nine million barrels in the latest week, according to data from the American Petroleum Institute.
The market is awaiting official inventory figures from the US Energy Information Administration.
Markets Continue Watching Geopolitical Risks
Despite the latest decline, tensions between Washington and Tehran remain unresolved.
Iran has maintained its position on its enriched nuclear material, while the United States insists that nuclear issues must feature in negotiations.
Any renewed military escalation or disruption to shipping could quickly change market sentiment.
For now, hopes of diplomatic progress and rising crude supplies are putting downward pressure on international oil prices.
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