Singapore: Oil prices fell in early trading on Thursday as hopes of renewed peace negotiations eased some concerns about supply disruptions from the Middle East conflict.
According to Reuters, Brent crude futures were down USD 1.22, or 1.1 percent, at USD 114.10 a barrel at 8.51 am Pakistan time. US West Texas Intermediate (WTI) futures fell USD 1.33, or 1.3 percent, to USD 101.45.
The declines partly reversed Wednesday’s gains, when Brent rose 1.3 percent and WTI advanced three per cent. The quoted prices represent an early trading snapshot rather than closing rates.
Diplomatic expectations strengthened after The Wall Street Journal reported that US Vice President JD Vance had written to Iranian Security Council chief Mohsen Rezaei in an effort to revive negotiations. The newspaper cited US officials and people familiar with the matter.
Nomura Securities economist Yuki Takashima told Reuters that expectations of resumed talks were encouraging selling, although concerns about further military escalation were limiting the fall.
The Saudi led coalition said it intercepted a Houthi ballistic missile directed towards eastern Saudi Arabia early on Thursday. Yemeni government forces also reported an attack on Aden airport on Wednesday.
The Houthis separately claimed a strike on a Saudi refinery with a capacity of 550000 barrels a day. Saudi authorities had not immediately confirmed that claim.
Diplomatic signals remained mixed. An official briefed on negotiations said Qatari mediators had presented a draft agreement, while a senior Iranian official dismissed the proposals as unacceptable. Iran’s foreign minister nevertheless said Tehran continued to give diplomacy a chance.
Expectations of recovering Russian refinery activity added pressure on prices. JPMorgan analysts said processing had increased by 350000 barrels a day to four million barrels a day in the preceding week.
US inventory figures offered contrasting signals. Crude stocks fell by 1.9 million barrels in the week ended October 23, while petrol inventories rose by 3.9 million barrels, according to the US Energy Information Administration figures cited by Reuters.
