The price of Brent oil fell by 0.7% to $114.47 per barrel in trading on Thursday, October 28, 2026. This price drop occurred after an increase on Wednesday, when Brent oil had risen by 1.3%.
Impact of Peace Talks on the Oil Market
Hopes for the resumption of peace talks between Tehran and Washington were one of the main factors behind the decrease in Brent and U.S. oil prices. In this context, U.S. officials, including J.D. Vance, the Vice President, have made efforts to establish communication with Mohsen Rezaei, the Secretary of the Supreme National Security Council. These communications aim to reopen diplomatic channels between the two countries.
Read more: Oil price drop influenced by Iran-U.S. negotiations
Increase in Crude Oil Production in Russia
Analysts at JPMorgan have reported that after the attack on the Ryazan refinery on October 15, no new attacks on Russian refining infrastructure have been reported. This silence in the market has led to an increase in the activity of Russian refineries by 350,000 barrels per day, bringing the total to 4 million barrels per day. Thus, it is expected that Russia will be able to increase its crude oil production and compensate for part of the recent production decline.
In the week ending October 23, data from the U.S. Energy Information Administration shows that energy companies withdrew 1.9 million barrels of crude oil from their reserves, while analysts had predicted a 15,000-barrel increase in reserves. Meanwhile, U.S. gasoline reserves saw an increase of 3.9 million barrels, while analysts expected a decrease of 0.9 million barrels.
Given this situation, the oil market has faced selling pressure, but the extent of this price drop appears to remain limited. Additionally, an expected increase in crude oil and diesel production in Russia is likely to exert further pressure on oil prices.
Read more: $11 billion increase in EU oil import costs · Oil prices rise after attack on Saudi refinery
