Oil prices drop about 3% as US, Iran explore path out of war

Oil prices declined approximately 3% on Friday amid heightened optimism for a resolution between the United States and Iran, despite concerns over escalating attacks on Saudi Arabia by Houthi fighters. Brent crude futures closed at $104.32 per barrel, while US WTI crude ended at $92.41 per barrel, marking a weekly increase of 0.4% for Brent and a 9.7% drop for WTI.

US and Iranian officials are in New York, deliberating a phased approach to de-escalation, which could involve Iran's reopening of the Strait of Hormuz and the lifting of economic sanctions by Washington.

Meanwhile, military leaders from Saudi Arabia, Turkey, and Pakistan are set to discuss support for Saudi Arabia, which is under Houthi assault, disrupting oil supplies from the world's leading energy exporter. In Asia, liquefied natural gas (LNG) spot prices softened on Friday, driven by subdued demand in Northeast Asia and expectations of progress in US-Iran negotiations.

The average November LNG delivery price in the region fell from $27.00 per million British thermal units to $25.85 per mmBtu. The region's gas supply outlook appears stable, with Japan holding sufficient stocks and South Korea's pre-winter replenishment likely limited by the forecast of mild weather.

In Europe, the Dutch TTF gas price settled at $24.09 per million British thermal units, registering a weekly decline of 9.5%. This downturn was attributed to robust LNG imports, high export rates, and subdued seasonal demand, alleviating immediate supply worries and ensuring ample inventory in both immediate and future delivery periods.