Oil slips more than 1% as talks continue on ending Iran war

Oil prices experienced a decline of over one percent on Monday following ongoing discussions between Iranian and Qatari officials in an attempt to reach an agreement to halt the US-Israeli war on Iran. Brent crude futures experienced a decrease of US$1.59, or 1.40 percent, settling at US$111.84 per barrel by 0011 GMT. US West Texas Intermediate crude prices also fell by US$1.56, or 1.50 percent, reaching US$102.56 per barrel.

Brent crude ended October at its highest level in six months due to concerns that the US-Iran conflict might intensify once again after the US midterm elections.

Tim Waterer, chief market analyst at KCM Trade, mentioned that oil is currently experiencing a technical correction after the strong gains of the previous week. Although there were lingering hopes for some form of diplomatic progress, the market also noted the absence of any significant military escalation over the weekend, which helped alleviate immediate price pressures.

However, the market remained cautious as there was a possibility of heightened rhetoric surrounding Iran, potentially pushing Brent toward US$120 following the midterm elections, according to Waterer.

Iranian Foreign Minister Abbas Araqchi stated on Sunday that the purpose of the ongoing and progressing talks is to continue consultations with Qatari mediators, emphasizing that Tehran is prepared for both defense and diplomacy. The discussions are taking place amidst attacks on oil tankers passing through the Strait of Hormuz, which are driving up global energy and shipping costs.

In October, Saudi Arabia increased crude exports compared to September, despite attacks by the Iran-aligned Yemeni Houthis on its energy infrastructure, according to two of three ship-tracking companies.

The Organization of the Petroleum Exporting Countries and its allies, including Russia, or OPEC+, maintained December production targets steady on Sunday, confirming expectations that additional policy adjustments will not occur until the following year. As the group continues to grapple with export disruptions stemming from the Iran war, the situation remains uncertain.