Oil prices fell on Monday, 26 October, after surging last week to near six-month highs, amid hopes of easing hostilities between the United States and Iran. Qatari mediators travelled to Tehran on Sunday as part of an effort to de-escalate regional tensions in coordination with the United States, according to reports carried by Reuters.
Brent crude futures fell about 1.9% to $114.51 a barrel, while US West Texas Intermediate dropped 2.16% to $101.04 a barrel. The pullback followed Friday’s settlement, when Brent closed at $116.72, its highest since late April, after attacks on Saudi energy sites. Attacks continued over the weekend, and Saudi Arabia said on Sunday it had intercepted more missiles and drones.
Analysts cautioned the reprieve may prove temporary, with expectations that strikes on Iran could still follow the US midterm elections on 3 November. For Pakistan, which imports most of its oil, any sustained easing would relieve pressure on the import bill and, with a lag, on domestic pump prices.
Sources: Reuters, Grafa. Written in our own words for information only.