Oil prices declined on Tuesday after reaching a five-month high as traders weighed diplomatic efforts between Iran and the United States against continued Houthi attacks on Saudi infrastructure and reports of vessel attacks in the Gulf. Brent crude futures settled down 76 cents, or 0.69%, at $108.79 a barrel after reaching an intraday high of $111.99. U.S. West Texas Intermediate (WTI) crude futures for November delivery fell $1.87, or 1.8%, to $101.79 a barrel, while the more actively traded December contract declined 72 cents to $97.82.<\/p>\n\n\n\n
Diplomatic efforts continued as Iranian President Masoud Pezeshkian met with Pakistan’s army chief, Field Marshal Asim Munir, to discuss mediation and regional developments. However, continued attacks by Yemen’s Iran-aligned Houthis on Saudi energy, airport and military targets kept concerns about regional stability and potential supply disruptions elevated. Reports of at least 18 vessel attacks over two weeks further supported a geopolitical risk premium in oil prices, which remained above $100 a barrel for Brent and the expiring November WTI contract.<\/p>\n\n\n\n
Meanwhile, Russian diesel shipments began returning to traditional destinations following the temporary suspension of U.S. sanctions and the lifting of an export ban, with tankers signaling voyages to Turkey and Brazil. U.S. energy officials also said the government was working with domestic refiners to increase diesel production and encouraging shuttered refineries to reopen. Traders were also awaiting U.S. inventory data, with analysts expecting crude oil and refined product stockpiles to have declined during the week ended October 16.<\/p>\n\n\n\n