Ammon News - Oil prices edged lower on Tuesday, falling about 1% as prospects ‌for a resolution of the US-Israeli war on Iran kept supply fears at bay with talks in Tehran, despite renewed Houthi attacks on Saudi Arabia.

Brent crude futures were down $1, or 0.86%, at $114.81 a barrel by 0418 ​GMT, while US West Texas Intermediate crude was down 88 cents, or 0.86%, ​at $100.88. Both fell 1% early in the session.

Saudi Arabia, Turkey and Pakistan held ⁠talks with Iranian officials in Tehran on Monday aimed at easing tension in the Middle East.

The ​four countries agreed to continue talks with a view to strengthening cooperation in peace and security, ​Iranian state media said.

"Crude oil prices are witnessing profit-taking after surging to multi-month highs, as renewed diplomatic efforts in West Asia have raised hopes of a potential breakthrough in negotiations between the US and Iran," said ​Sugandha Sachdeva, founder of SS WealthStreet, a New Delhi-based research firm.

Last week, Brent prices surged ​to more than $117 a barrel, the highest since April, after a wave of Iranian attacks on tankers around ‌the ⁠Strait of Hormuz. Brent prices touched $117 on Monday as well.

"Prices remain elevated amid persistent geopolitical uncertainties," Sachdeva said.

Scope for peace looked fragile, however, with renewed attacks by Iran-aligned Houthis on key producer Saudi Arabia.

October has been the worst month for attacks on commercial shipping in the Strait of Hormuz ​and nearby waterways, data ​from a Washington-based think ⁠tank shows, among worldwide maritime security incidents it has tracked since 2017.

The war rippling across the Middle East placed the Strait of Hormuz ​at the center of the turmoil. The narrow waterway carried around a ​fifth of ⁠the world's energy supplies before the conflict erupted in February.

The oil market is vulnerable, with stress across areas such as supply, logistics, inventories and refining, ANZ Research said in a note.

Gulf crude ⁠exports fell ​for a fourth straight week and flows through the ​Strait of Hormuz were just about 60% of their normal level, while global distillate inventories held nearly 5% below their ​five-year average, it added.


Reuters