Global crude oil prices declined more than 3% on Monday as continuing diplomatic discussions between Iran and Qatar raised hopes of progress towards ending the US-Israeli war on Iran.
Brent crude futures fell 3% to $110 per barrel, while US West Texas Intermediate (WTI) crude dropped 3.10% to $100.90.
The decline followed a sharp rally last week, when Brent ended October at its highest level in six months amid concerns over further military escalation.
Diplomacy Eases Immediate Oil Supply Concerns
Iranian and Qatari officials continued discussions for a third consecutive day, seeking an agreement that could facilitate direct negotiations between Tehran and Washington.
Iranian Foreign Minister Abbas Araqchi said on Sunday that talks were progressing through Qatari mediation.
He reiterated Tehran's readiness for both defence and diplomacy.
Tim Waterer, chief market analyst at KCM Trade, attributed the decline to profit-taking and expectations of diplomatic progress.
According to Reuters, Waterer said the absence of significant military escalation over the weekend had reduced immediate pressure on crude prices.
However, he warned that renewed tensions following the US midterm elections could push Brent towards $120 per barrel.
Concerns persist over shipping security in the Strait of Hormuz, a crucial route for international oil transportation.
Recent attacks on commercial vessels have increased shipping rates and energy transportation costs, keeping traders alert to potential disruptions.
Opec+ Maintains December Oil Output Targets
The Organisation of the Petroleum Exporting Countries and its allies, collectively known as Opec+, decided on Sunday to retain existing December production targets.
The decision was broadly in line with market expectations as producers assessed geopolitical uncertainty and export disruptions.
Meanwhile, ship-tracking data from two monitoring firms cited by Reuters indicated that Saudi Arabia increased crude exports in October compared with September.
The increase came despite reported attacks on Saudi energy infrastructure by Iran-backed Houthi forces in Yemen.
Market participants will continue monitoring diplomatic developments, shipping security in the Gulf and the possibility of renewed military escalation for indications of future oil price movements.
