Oil falls $1 on U.S.–Iran talks hopes: Brent at $98.16

Oil prices fell further on Wednesday as investors watched improving supply and hopes for a diplomatic solution to the nearly seven-month U.S.–Israel war against Iran.

Brent futures fell $1.09, or 1.1 percent, to $98.16 a barrel, while WTI crude fell $1.50 to $89.01 a barrel.

“The market currently feels more constructive on the global oil supply picture than it did a few weeks ago,” said Tim Waterer, chief analyst at KCM Trade. “The meeting of U.S. and Iranian delegations in New York has given traders a glimmer of hope… Despite continued harsh rhetoric — including threats of ‘obliteration’ — the market is choosing to price in the possibility of talks.”

The drop follows months of volatility caused by the practical blockage of the Strait of Hormuz and Saudi export disruptions, which had pushed Brent above $107 in September.

Source: Al Jazeera