The decline followed gains recorded on Wednesday, when Brent crude increased by approximately 1.4 per cent while WTI rose by 0.6 per cent. Both benchmarks had reached their lowest levels in about two months earlier in the week, according to market reports.
Market analysts attributed the latest losses partly to expectations that diplomatic efforts could help reduce geopolitical tensions. Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, told Reuters that behind-the-scenes efforts were underway to secure a ceasefire between Russia and Ukraine. He also noted expectations that the conflict involving Iran would not escalate ahead of next week's US-China summit.
In the Russia-Ukraine conflict, negotiators from both countries agreed to a major prisoner exchange following two days of peace talks in Abu Dhabi. However, US mediators indicated that significant disagreements remained, particularly over territorial issues. Ukrainian President Volodymyr Zelenskyy expressed hope that concrete progress towards resolving the war could be achieved before the end of the year.
Meanwhile, tensions involving Iran continued to create uncertainty in the Middle East. Iranian security chief Mohsen Rezaei warned that there would be consequences if the United States launched further strikes against Iran. Washington maintained that nuclear issues must form part of initial negotiations aimed at ending the conflict.
Supply concerns also remained important in determining market movements. Reuters reported that OPEC+ crude oil production increased significantly in October, largely driven by higher output from Saudi Arabia, despite continued disruption to shipments through the Strait of Hormuz.
Additionally, US crude oil inventories increased by approximately nine million barrels during the latest reporting week, according to data from the American Petroleum Institute (API), cited by market sources. The US Energy Information Administration was expected to release its official inventory figures later on Thursday.
Despite the price decline, uncertainty surrounding Middle Eastern oil shipments and the outcome of diplomatic negotiations continued to influence investor sentiment.https://web.facebook.com/share/p/1QFwPhqHFr/
Leave a Reply