The cost of a WTI barrel fell below 102 dollars amid diplomatic efforts for de-escalation
On Monday, oil on global markets is declining after a sharp rise last week. Quotes are decreasing against the backdrop of hopes for easing tensions between the US and Iran. This was reported by Ukrinform citing Reuters, according to the portal PromPolitInform.
WTI crude oil futures fell by 2.23 dollars to 101.04 dollars per barrel at 04:26 GMT. The price of Brent crude decreased by 2.21 dollars to 114.51 dollars.
Weekly price growth following Friday’s trading session reached 6% for Brent and 2.3% for WTI. This was driven by rising supply concerns following Houthi attacks on Saudi Arabian facilities.
Diplomatic efforts and security risks
Qatari mediators have arrived in Tehran to discuss de-escalation opportunities in cooperation with the US. Despite these efforts, Iran-backed Houthis continued to conduct strikes on an airport and Saudi Arabian oil infrastructure throughout the weekend.
“Concerns about the resumption of military operations in the Middle East, which largely drove the oil price growth last week, eased this morning, but this relief may prove temporary,” said Vandana Hari, founder of Vanda Insights.
Impact of the conflict on the energy market
Analysts expect continued high volatility, as escalation risks remain relevant following the November 3 US elections. The war against Iran, ongoing since February 28, has significantly complicated commercial shipping through the Strait of Hormuz and the Bab-el-Mandeb Strait.
As part of a strategy to increase supply chain resilience, Saudi Aramco plans to begin storing crude oil in Singapore from the second half of 2027. The agreement was announced by the energy ministers of Saudi Arabia and Singapore.
International Energy Agency Executive Director Fatih Birol emphasized at an industry event in Singapore that he does not expect energy markets to return to pre-war conditions during 2027. Analysts view the current price decline as a technical position adjustment rather than a sign of situation stabilization.
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