Crude oil prices in Asian markets today (Monday) fell by more than 3% to $110 per barrel. This price drop comes as representatives from Iran and Qatar continue negotiations for the third consecutive day to reach an agreement to end the U.S.-Israel war against Iran.
Details of Crude Oil Prices
According to reports, Brent crude oil prices fell by $3.43, equivalent to 3%, reaching $110 per barrel. Additionally, U.S. West Texas Intermediate crude also decreased by $3.50, or 3.4%, trading at $100.62.
Read more: Oil Price Drop Following Hopes for Easing Tensions in the Middle East
Analysis of the Oil Market Situation
Tim Waterer, senior market analyst at KCM Trade, stated that the drop in oil prices today is partly due to a technical correction in the market following a sharp increase in prices last week. He also pointed to hopes for diplomatic progress and avoidance of military conflicts, which alleviate some of the market's immediate concerns.
Abbas Araghchi, Iran's Foreign Minister, announced on Sunday that ongoing negotiations with Qatar are progressing and emphasized that Tehran is prepared for both diplomatic and defensive paths. These negotiations continue amid rising costs of global energy and maritime transport due to attacks on oil tankers passing through the Strait of Hormuz.
Increase in Saudi Oil Exports
Two out of three ship tracking companies reported that Saudi Arabia increased its crude oil exports in October compared to September, despite attacks by Yemen's Houthis on the country's energy infrastructure. Despite the recent price drop, some analysts believe that further increases in oil prices are likely to be capped at $120 per barrel.
Suvooro Sarkar, head of energy research at DBS Bank, stated that markets have already factored in the likelihood of intensified military responses from the U.S. and Israel following the midterm elections. He added that as long as a significant portion of oil flow from the Strait of Hormuz and alternative routes remains at around 80% of pre-war levels, the market's reaction to potential widespread attacks will also remain limited.
In another development, the OPEC+ coalition decided on Sunday to keep its oil production quota unchanged for December.
Read more: Natural Gas Prices Rise Over 2% at the Start of the Week · Brent and West Texas Crude Oil Prices Drop Under the Influence of Diplomatic Negotiations
