Crude oil prices decline up to 1 pc on hopes of Middle East de-escalation
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New Delhi, Oct 27 : Crude oil prices decreased by up to 1 per cent on Tuesday, extending the decline for the second day as high-level diplomatic talks in Tehran helped temper immediate supply disruption fears.
However, prices remained close to six-month highs on persistent security risks in the Middle East.
Brent crude futures -- the international oil benchmark -- fell as much as 1.17 per cent or $1.36 to $114.45 per barrel.
Similarly, US West Texas Intermediate (WTI) crude dropped over 1 per cent or $1.16 to $100.60 per barrel.
The pull-back followed a diplomatic meeting in Tehran where representatives from Saudi Arabia, Turkey and Pakistan held talks with Iranian officials to defuse regional tensions, according to reports.
Analysts said crude remains elevated with WTI around $100.90 and Brent near $115.10. On MCX, immediate support is seen in the Rs 9,300-9,060 range, crucial for sustaining momentum.
"Despite concerns over potential renewed strikes against Iran, recovery of Middle Eastern crude exports to levels close to those seen before the war has eased some supply concerns. However, possibility of further geopolitical escalation continues to pose upside risk to prices," analysts said
They further noted that crude is likely to remain volatile with developments in Middle Eastern supply flows key to its next direction.
However, Saudi officials said the visit sought to establish open negotiating channels to prevent return of military escalation.
Reports claim all four countries agreed to continue dialogue to strengthen cooperation on peace and security
While hopes of diplomatic resolution eased some fears of supply disruption, tensions flared again after Iran-aligned Houthi forces launched renewed attacks on key producer Saudi Arabia, limiting the downside.
The conflict has placed pressure on the Strait of Hormuz which is a vital maritime bottleneck that handled about 20 per cent of global energy shipments prior to hostilities in February.
Additionally, energy markets remain on edge after Iranian attacks on oil tankers near the strait pushed Brent past $117 a barrel last week, its highest since April. Brent briefly retested $117 on Monday before settling lower.
However, prices remained close to six-month highs on persistent security risks in the Middle East.
Brent crude futures -- the international oil benchmark -- fell as much as 1.17 per cent or $1.36 to $114.45 per barrel.
Similarly, US West Texas Intermediate (WTI) crude dropped over 1 per cent or $1.16 to $100.60 per barrel.
The pull-back followed a diplomatic meeting in Tehran where representatives from Saudi Arabia, Turkey and Pakistan held talks with Iranian officials to defuse regional tensions, according to reports.
Analysts said crude remains elevated with WTI around $100.90 and Brent near $115.10. On MCX, immediate support is seen in the Rs 9,300-9,060 range, crucial for sustaining momentum.
"Despite concerns over potential renewed strikes against Iran, recovery of Middle Eastern crude exports to levels close to those seen before the war has eased some supply concerns. However, possibility of further geopolitical escalation continues to pose upside risk to prices," analysts said
They further noted that crude is likely to remain volatile with developments in Middle Eastern supply flows key to its next direction.
However, Saudi officials said the visit sought to establish open negotiating channels to prevent return of military escalation.
Reports claim all four countries agreed to continue dialogue to strengthen cooperation on peace and security
While hopes of diplomatic resolution eased some fears of supply disruption, tensions flared again after Iran-aligned Houthi forces launched renewed attacks on key producer Saudi Arabia, limiting the downside.
The conflict has placed pressure on the Strait of Hormuz which is a vital maritime bottleneck that handled about 20 per cent of global energy shipments prior to hostilities in February.
Additionally, energy markets remain on edge after Iranian attacks on oil tankers near the strait pushed Brent past $117 a barrel last week, its highest since April. Brent briefly retested $117 on Monday before settling lower.
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