Brent crude drops to $109.75 per barrel as renewed Iran-Qatar negotiations ease concerns over potential global oil supply disruptions.
LONDON: Global oil prices dropped more than 3% on Monday, with Brent crude falling below $110 per barrel as renewed diplomatic efforts between Iran and Qatar raised hopes of an agreement to end the ongoing US-Israeli conflict with Iran.
Brent crude futures declined by $3.68, or 3.2%, to $109.75 per barrel by 0407 GMT. US West Texas Intermediate (WTI) crude also fell by $3.43, or 3.3%, to $100.69 per barrel.
The decline followed three consecutive days of discussions between Iranian and Qatari officials aimed at finding a diplomatic solution to the conflict. The negotiations have raised expectations of reduced regional tensions and eased immediate concerns about further disruptions to global energy supplies.
US President Donald Trump has indicated that he wants to give diplomatic efforts with Tehran more time before considering renewed military action following Tuesday’s US midterm elections.
Trump also expressed confidence that the conflict could end through an agreement or other means, signalling Washington’s continued interest in resolving the crisis.
Meanwhile, concerns over the security of international energy shipments remain significant. Recent attacks on vessels in the Strait of Hormuz have highlighted the risks facing one of the world’s most important oil transportation routes.
Despite Monday’s decline, oil prices remain elevated following a strong rally in October, when Brent crude recorded its highest monthly closing level in six months.
Swiss financial institution UBS has projected that Brent crude could remain near $110 per barrel towards the end of the year. High shipping costs, limited tanker availability and recovering Chinese oil imports are among the factors supporting the market outlook.
Market participants are now closely monitoring diplomatic developments between Washington and Tehran, as well as security conditions across the Middle East, for further direction in global oil prices.
