Oil prices fell more than 3% on Monday after Iranian and Qatari officials held talks for a third consecutive day, seeking a deal to end the US-Israeli war on Iran. The slide also comes ahead of Tuesday’s Midterm elections.
On Monday, Brent crude futures fell $3.43, or 3%, to $110 a barrel, while US West Texas Intermediate crude fetched $100.62 a barrel, down $3.50, or 3.4%.
The peace talks come amid attacks on oil tankers transiting the Strait of Hormuz, driving up global energy and shipping costs. In October, Saudi Arabia increased crude exports versus September despite attacks by the Iran-aligned Yemeni Houthis on its energy infrastructure, two of three ship-tracking companies said.
Brent closed October at a six-month high, amid concerns that the US-Iran conflict could escalate again following Tuesday’s US midterm elections.
U.S. Secretary of State Marco Rubio said late Sunday that President Donald Trump would prefer a diplomatic resolution to the conflict with Iran rather than resorting to military action. Rubio said Trump had not yet decided on the next course of action but remained confident in the U.S. military’s ability to carry out an operation if necessary.
Goldman Sachs lifted its December Brent forecast to $105 a barrel from $90 and raised its 2027 average outlook by 10% to $88.
Morgan Stanley raised their year-end Brent forecast to $105 a barrel, reflecting growing concerns over supply disruptions.
By CEO NA Editorial Staff
