Brent and WTI crude prices retreated as optimism regarding peace talks and a lack of immediate escalation in the Iran conflict outweighed ongoing concerns over tanker safety in the Strait of Hormuz.
Brent shed over $1 in Asian trade to $91.32 per barrel as hopes grew for a Russia-Ukraine ceasefire and the Iran war not escalating before next week's US-China summit. Higher OPEC output in October and an API-reported crude build added bearish pressure, though continued tanker attacks in the Strait of Hormuz limited losses.
WTI dropped over $1 in Asian trade to $85.32 per barrel on growing hopes for peace in Ukraine and Iran, higher OPEC production in October, and an API estimate showing a build in US crude inventories. Continued attacks on tankers in the Strait of Hormuz capped some of the losses.
Oil prices extended losses in Asian trade as markets priced in potential de-escalation in Russia-Ukraine and Iran conflicts. Brent crude fell to $91.32 per barrel, while WTI dropped to $85.32, pressured by higher October OPEC production and an API report showing a build in US crude inventories.
Markets are pricing in peace hopes for Ukraine and Iran, plus higher OPEC production and a US crude inventory build, outweighing concerns about tanker safety in the Strait of Hormuz.
WTI shed more than $1 in Asian trade, trading at $85.32 per barrel at the time of writing.