Key facts
- Brent futures lost $1.14, or 1.2%, to $91.62 a barrel by 0141 GMT, and WTI fell $1.04, or 1.2%, to $85.49.
- Hiroyuki Kikukawa of Nissan Securities Investment said markets were falling on expectations of behind-the-scenes ceasefire efforts between Russia and Ukraine.
- Kikukawa also cited expectations that the Iran war is unlikely to escalate ahead of a US-China summit next week.
- Russian and Ukrainian negotiators agreed a major prisoner exchange at Abu Dhabi talks that ended on Wednesday, though US mediators said territory differences remain.
- Iranian security chief Mohsen Rezaei said there would be consequences if the US launches new strikes on Iran.
- US crude stocks rose 9 million barrels in the latest week, market sources said, citing American Petroleum Institute data.
Brent crude futures lost $1.14, or 1.2%, to $91.62 a barrel by 0141 GMT on November 12, while US West Texas Intermediate fell $1.04, or 1.2%, to $85.49, according to Reuters. Brent had risen about 1.4% and WTI 0.6% on Wednesday after hitting two-month lows the previous day.
"Markets are falling on expectations that behind-the-scenes efforts are underway to secure a ceasefire between Russia and Ukraine and that it is unlikely the Iran war will escalate ahead of the US-China summit next week," said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities. He added that given the uncertainty surrounding the Strait of Hormuz, the markets are unlikely to suffer a significant collapse.
Russian and Ukrainian negotiators agreed to a major prisoner exchange at two days of peace talks in Abu Dhabi that ended on Wednesday, although US mediators said differences remained on other major issues, including territory. Ukrainian President Volodymyr Zelenskiy said Kyiv hoped to achieve concrete results on resolving the war this year.
Iranian security chief Mohsen Rezaei said in televised remarks that Iran will not allow even a single particle of enriched nuclear material to leave the country and that there will be consequences if the US launches new strikes. Washington has said nuclear issues must be part of any initial negotiations with Iran aimed at ending the eight-month-old war, while US officials downplayed the need for further military strikes.
OPEC+ crude oil production jumped in October, led by a sharp increase in output from Saudi Arabia despite continued disruption to shipments through the Strait of Hormuz. US crude stocks rose by 9 million barrels in the latest week, market sources said, citing American Petroleum Institute data. Official US Energy Information Administration data is due on Thursday, delayed a day due to a US national holiday on Wednesday.