Oil prices declined on Thursday as renewed hopes for diplomatic progress between the United States and Iran eased some concerns about Middle Eastern supply disruptions. Brent crude futures settled down 44 cents, or 0.38%, at $114.88 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 78 cents, or 0.76%, to $102.00 a barrel. Both benchmarks had fallen more than $2 earlier in the session before recovering some losses following reports of additional attacks on Saudi energy infrastructure.<\/p>\n\n\n\n
Diplomatic efforts continued as the United States sought to revive negotiations with Iran, while Qatari mediators presented Tehran with a proposed agreement to end the conflict. However, continued hostilities between Saudi Arabia and Yemen’s Iran-aligned Houthis kept supply concerns elevated. The Saudi-led coalition reported intercepting another ballistic missile fired toward the kingdom, while reports indicated that Saudi Aramco had been targeted in a new wave of missile attacks. Iran’s Revolutionary Guards also reported that three tankers had struck sea mines and caught fire while attempting to navigate an unauthorized route south of the Strait of Hormuz. Concerns about potential renewed U.S. military action against Iran following the November 3 midterm elections further limited the decline in prices.<\/p>\n\n\n\n
Expectations of increased Russian oil refining and diesel production also weighed on the market. Russian refinery operations reportedly rebounded by 350,000 barrels per day last week to approximately 4 million barrels per day, following a period without confirmed attacks on refining infrastructure. Meanwhile, U.S. crude and distillate inventories declined during the week ended October 23, reflecting stronger demand, while gasoline inventories increased, according to the Energy Information Administration (EIA). Investors continued to monitor Russian diesel supplies and global export flows amid uncertainty surrounding the broader energy supply outlook.<\/p>\n\n\n\n