The futures price of Brent crude oil on October 23, 2023 (Aban 1, 1402) fell by 66 cents, equivalent to 0.57%, reaching $115.15 per barrel. Similarly, the price of West Texas Intermediate (WTI) crude oil in the U.S. also decreased by 44 cents, equivalent to 0.43%, trading at $101.32 per barrel.
Diplomatic negotiations and their impact on oil prices
On Monday, officials from Saudi Arabia, Turkey, and Pakistan met with Iranian officials in Tehran. The aim of these negotiations was to reduce tensions in the Middle East, which alleviated some concerns about supply disruptions. These factors contributed to a decrease in risks and pressure on oil prices.
Read more: Iran's ambassador to Pakistan emphasized the reopening of the Strait of Hormuz
Maritime security incidents and their impact on the oil market
According to data collected by a Washington-based think tank, October has been the worst month in terms of security incidents for commercial vessels in the Strait of Hormuz and its adjacent waterways. This war has spread its consequences throughout the Middle East, placing the Strait of Hormuz at the center of these unrests. Before the onset of the military aggression by the U.S. and the Zionist regime against Iran in February, about one-fifth of the world's energy resources were transported through this narrow waterway.
Last week, following a wave of security incidents involving oil tankers around the Strait of Hormuz, the price of Brent oil surged to over $117 per barrel, the highest level since April. On Monday, the price of Brent oil also reached the $117 mark, but due to recent negotiations, prices decreased.
On the other hand, reports indicate that Russian refineries are increasing their diesel production in October; this comes after the Russian government allocated quotas for the export of this product following an agreement between the Kremlin and Washington regarding supply. This decision could also impact oil price trends and indicates further developments in the global energy market.
Read more: Great Eastern Shipping continues to purchase a large LPG tanker · Brent oil price drops to $114 following diplomatic developments
