Investing.com-- Oil prices fell in Asian trading on Monday as hopes for progress in diplomatic efforts to end the U.S.-Israeli war with Iran eased immediate concerns about further supply disruptions.
Brent Oil Futures expiring in January fell 1.8% to $111.43 a barrel by 20:16 ET (01:16 GMT), while U.S. West Texas Intermediate crude futures declined 2% to $102.04 per barrel.
The decline followed strong gains in recent sessions, with the absence of a major escalation over the weekend and continued negotiations encouraging some investors to take profits.
Both contracts ended nearly 15% higher for the month of October.
U.S. President Donald Trump told Israeli Prime Minister Benjamin Netanyahu in a phone call on Saturday that he preferred to give diplomacy more time before deciding whether to resume military action, Axios reported on Sunday. The approach concerned Netanyahu, who pressed for U.S. strikes to restart shortly after the midterm elections, according to the report.
The prospect of further talks offered some relief, but the election remained a key event risk because Trump has previously indicated that military action could follow if negotiations fail.
Iranian and Qatari officials were holding a third consecutive day of discussions aimed at ending the conflict. Tehran has said it remains open to diplomacy while preparing to defend itself, as Qatar seeks to mediate a proposal to reopen the Strait of Hormuz.
The waterway has remained a central concern for energy markets. Attacks on tankers and restrictions on Iranian oil exports have raised shipping and insurance costs.
Meanwhile, the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, agreed to keep December output targets unchanged, with further policy adjustments unlikely before next year as the conflict continues to disrupt exports.
The pullback in prices may prove temporary if negotiations fail. Analysts warned that an escalation after the U.S. midterm elections could push Brent towards $120 a barrel.
Even if a deal is reached, the pace at which shipping and oil exports return to normal could determine how quickly supply concerns ease.
Original Article
Oil falls as Trump favours Iran diplomacy before midterm elections
Gold rebounds toward $3,900 as dip buyers emerge, Iran risks persist
