Oil Prices Plummet Amid Hopes of Strait of Hormuz Negotiations
Oil prices plummeted over 2% on Tuesday as hopes of negotiations between Iran and Gulf oil producers to resolve the Strait of Hormuz transit issue sparked a wave of profit-taking.
The decline, which saw Brent crude for November delivery fall $3.02 (2.81%) to $104.61 per barrel, marked the first down day for Brent in six sessions and the first for WTI in nine.
Despite the drop, both benchmarks held above the $100-per-barrel threshold, with WTI for October delivery falling $2.43 (2.37%) to $100.05 per barrel.
The multilateral meeting scheduled to take place in Oman is expected to include foreign ministers from the six Gulf Cooperation Council (GCC) member states, including Oman, along with Iran.
Giovanni Staunovo, energy analyst at UBS, noted that some reports suggesting the possibility of new negotiations in the Middle East put downward pressure on oil prices.