Oil prices fall as peace hopes offset fears of growing Middle East conflict

Oil prices slipped on Thursday as hopes of renewed diplomacy between the United States and Iran eased some concerns about supply risks from Middle East hostilities. At 0351 GMT, Brent was down $1.22, or 1.1%, at $114.10 a barrel, while US West Texas Intermediate fell $1.33, or 1.3%, to $101.45. Both benchmarks had risen on Wednesday, with Brent up 1.3% and WTI gaining 3%.

The decline was limited by continued attacks and fears of further escalation, including Houthi strikes and possible US action against Iran. Separately, expectations of higher Russian output weighed on prices after refinery runs rebounded by 350 kbd last week to 4 mbd. US crude inventories fell by 1.9 million barrels in the week to October 23, while gasoline stocks increased by 3.9 million barrels, the Express Tribune reported.