Crude Oil Prices Fall Over 1.5% As Brent Slips To $91 Amid Iran Peace Hopes, Rising US Inventories

Global crude oil prices declined on Thursday as expectations of diplomatic progress in the Middle East and the Russia-Ukraine conflict eased concerns over potential supply disruptions.

Brent crude futures fell 1.63% to $91.25 per barrel, while US West Texas Intermediate (WTI) crude declined 1.48% to $85.25 per barrel.

Rising oil production by the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) and an increase in US crude inventories also weighed on prices.

Oil markets responded to hopes that diplomatic efforts could reduce geopolitical tensions and improve the outlook for global energy supplies.

Russia and Ukraine reportedly agreed to a major prisoner exchange following two days of US-mediated discussions in Abu Dhabi.

However, disagreements over territorial control remain unresolved, limiting expectations of an immediate settlement.

Investors are also monitoring developments surrounding the Iran conflict ahead of the upcoming US-China summit.

Although markets anticipate the possibility of avoiding further escalation, uncertainty over the Strait of Hormuz continues to restrict a sharper decline in crude prices.

Iran's nuclear programme remains another obstacle to negotiations.

Iranian security chief Mohsen Rezaei warned against attempts to remove enriched nuclear material from the country, highlighting continuing differences between the negotiating parties.

Supply developments have added downward pressure on international crude benchmarks.

OPEC+ production increased sharply in October, largely because of higher output from Saudi Arabia.

Meanwhile, US crude inventories rose by approximately 9 million barrels during the latest reporting week, according to American Petroleum Institute data cited by market sources.

The inventory increase suggests greater availability of crude in the US market, adding to concerns about the balance between supply and demand.

However, geopolitical uncertainty continues to influence market sentiment.

While diplomatic developments and increased production have weighed on prices, risks surrounding the Strait of Hormuz and unresolved international conflicts could limit further declines.