Oil falls on Thursday as peace-talk hopes offset Middle East supply fears

Mixed · 2Oil prices fell on Thursday 29 October, paring the previous day's gains, as hopes that peace talks might resume took the edge off concerns about Middle East supply disruptions from the escalating regional conflict. 1 2 Centre · 1By 0132 GMT, Brent futures were down 82 cents, or 0.7%, at $114.50 a barrel, and US West Texas Intermediate (WTI) futures were down $1.04, or 1.0%, at $101.74. In a separate CNA report, WTI was down 92 cents, or 0.9%, at $101.86 after touching a low of $101.75. 1 3 Right · 1Later, at 06:51 a.m. Saudi time, Reuters reported Brent down $1.22, or 1.1%, at $114.10 and WTI down $1.33, or 1.3%, at $101.45. On Wednesday Brent had risen 1.3% and WTI 3%. 2

Centre · 1The Wall Street Journal reported on Wednesday, citing US officials and people familiar with the matter, that US Vice President JD Vance had sent a letter to Iranian Security Council chief Mohsen Rezaei in an effort to revive peace negotiations. 1 Right · 1Qatari mediators have presented Iran with a new draft deal to end the war with the US and Israel, according to an official briefed on the talks, but a senior Iranian official dismissed it as unacceptable ideas that did not amount to an offer. Iran's foreign minister said Tehran was still giving diplomacy a chance and flagged the possibility of completing its seven-day plan in less than a week if adopted. 2 Centre · 1Yuki Takashima, an economist at Nomura Securities, said selling pressure was prevailing on expectations that talks may resume, but that the decline remained limited, owing to concerns over intensified Houthi attacks and fears the US may attack Iran after its midterm elections on 3 November. 1

Centre · 1The Saudi-led coalition fighting Yemen's Houthis said it destroyed a ballistic missile the group fired towards the kingdom's eastern region early on Thursday. Yemeni government forces said the Houthis attacked Aden airport on Wednesday, after the group warned people to evacuate it. 1 3 Centre · 1The Houthis said on Tuesday they hit Saudi Arabia's biggest oil refinery, a 550,000-barrel-per-day facility, with a missile; Saudi authorities did not immediately confirm the strike. 3 Right · 1Expectations of higher Russian crude and diesel output also weighed on prices, Reuters reported. JPMorgan analysts noted no further confirmed attacks on Russian refining infrastructure since the 15 October strike on the Ryazan refinery, letting refinery runs rebound by 350,000 barrels per day to 4 million, though higher crude output would not necessarily mean higher exports. 2

Mixed · 2The US Energy Information Administration said crude stocks fell by 1.9 million barrels in the week ended 23 October, against a forecast 15,000-barrel build in a Reuters poll, while gasoline stocks rose 3.9 million barrels versus an expected 0.9 million-barrel draw. 1 2