Brent Nears $91 as Gulf Oil Output Rises and US-Iran Talks Stall.
Dubai: Oil prices were heading towards a two-month low on Thursday as Middle East production increased and hostilities between Iran and the US remained muted.
Brent futures for January settlement fell 1.54 per cent to $91.22 a barrel at 12.28pm in Singapore. West Texas Intermediate (WTI) futures for December delivery declined 1.5 per cent to $85.26. Brent had risen 1.4 per cent on Wednesday.
The global benchmark remains more than 50 per cent higher this year, but November has brought a sharp reversal. Gulf oil flows are recovering, while traders hope the Democrats’ midterm election victory will help accelerate an end to the Iran conflict, now in its ninth month.
Gulf output nears pre-war levels
Saudi Arabia, the world’s largest crude exporter, told OPEC that its oil production jumped 26 per cent in October, reaching one of its highest monthly levels in years. Iraq also reported a new wartime production high. Additional barrels are reaching physical markets as consumption remains constrained. Price differentials have weakened, and signs of a potential surplus are emerging.
Middle East exports have returned close to pre-war levels, despite the lack of secure shipping lanes and the need to find alternative routes. Saudi Arabia has been routing crude through its East-West pipeline to the Red Sea, bypassing the Strait of Hormuz. A shuttle trade involving ship-to-ship transfers has also helped bridge supply gaps. Meanwhile, Iranian attacks on tankers continue.
Diplomatic efforts have made little progress. Mohsen Rezaee, secretary of Iran’s Supreme National Security Council, told Al Mayadeen that Iran would not remove any enriched nuclear material from the country. Washington has made this a key condition for negotiations. The two sides also remain divided over frozen assets and the US naval blockade.
