Oil settles lower on peace hopes, Saudi attacks limit losses
Brent finishes the day down US$0.91 or 0.8% at US$115.81 a barrel
Brent crude futures settled down 0.8% to $115.81 per barrel on Monday (Oct 26) as optimism over eased Middle East hostilities weighed on prices. However, persistent attacks on Saudi Arabia and maritime shipping kept investors cautious, as WTI crude futures dropped 1.46% to $101.76 per barrel. Both benchmarks traded near six-month highs despite strong gains on Friday, with Brent reaching over $3 higher to post a weekly 6% gain and WTI rising 2.3%.
The focus remained on tensions in the Middle East following Houthi strikes on Saudi pumping stations and Riyadh airport over the weekend. Saudi Arabia claimed to have destroyed three drones targeting Riyadh and southern regions, but confirmation was lacking. Hopes for a diplomatic breakthrough, following US and Israeli strikes on Iran and the subsequent conflict spreading to Saudi Arabia and Yemen, contributed to the price decline.
Efforts to ease regional tensions included Qatari mediators traveling to Tehran and talks between Saudi Arabia, Turkey, Pakistan, and Iran, which agreed to continue dialogue to strengthen cooperation in peace and security. The effects of the US-Israeli war with Iran continue to impact global shipping through the Strait of Hormuz and Bab el-Mandeb Strait, with October witnessing the worst month for attacks on commercial vessels in the region.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
