WTI falls to $101.41 as hopes for peace talks revive
Key Facts
West Texas Intermediate fell in Asian trading on October 29 after rising 3% the previous day, as hopes of resuming peace talks returned and eased concerns about disruptions to Middle East supplies. Reuters quoted Yuki Takashima, an economist at Nomura, as saying that “selling pressure is prevailing amid expectations of a resumption of peace talks,” adding that “the decline remained limited.” EL7 data showed crude closing at $102.78 per barrel on October 28, then $101.41 on October 29. In the broader market, Brent fell 82 cents, or 0.7%, to $114.50 per barrel at 01:32 GMT on October 29, according to Reuters. The pressure from diplomatic optimism coincided with continuing supply risks stemming from the escalating regional conflict.
Hopes for de-escalation came as developments on the ground sent mixed signals to the oil market. Reuters reported that the Houthis attacked Aden airport on Wednesday after warning residents to evacuate amid intensifying fighting in Yemen. The Houthis had said on Tuesday that they struck Saudi Arabia’s largest oil refinery with a missile, but Saudi authorities did not immediately confirm the strike, according to Reuters. In contrast, Reuters reported that Qatari mediators had presented Iran with a new draft agreement to end the war with the United States and Israel. A senior Iranian official described the ideas as unacceptable and not amounting to an offer, leaving the course of talks clouded by uncertainty as markets assess supply risks.
On U.S. inventories, the Energy Information Administration reported that energy companies drew 1.9 million barrels from crude inventories in the week ended October 23. Analysts had expected an increase of 15,000 barrels, according to a Reuters poll. But gasoline inventories rose 3.9 million barrels in the same week, against expectations for a decline of 0.9 million barrels. The crude figures provided a counterweight to pressure from hopes of resuming talks, while the gasoline figures showed a different trend in inventory components. Diplomatic developments, supply risks and inventory data thus combined to explain the price decline after Wednesday’s gains.
The previous sessions show how quickly the balance between de-escalation news and supply concerns can shift. On October 27, Brent stood at $115.15 per barrel and WTI at $101.32, with both crudes falling amid hopes of a resolution, while Houthi attacks on Saudi Arabia limited losses, according to Reuters. The following day, Brent rose 1.3% and WTI 3%, before both fell in the next Asian trading session. According to EL7 data, the October 29 session closed with Brent at $110.27 and WTI at $101.41, compared with October 28 closes of $115.32 and $102.78, respectively. OPEC set November 1, 2026, for the next meeting of the seven countries participating in the OPEC+ decision to review market conditions, the next checkpoint for tracking supply and price developments.