Oil prices dropped by over 3 percent on Monday, November 2, after Iranian and Qatari officials held a third straight day of discussion aimed at pushing for a deal to end the US-Israeli war on Iran, temporarily easing fears of energy supply disruptions.
Global benchmark Brent crude futures declined 3.05%, to $110 a barrel at around 9.30 am while US West Texas Intermediate crude was at $100.9 a barrel, down 3.10 percent.
This downward shift comes on the heels of a sharp rally last week, which saw Brent close out October at its highest-level in six months amid concerns over potential military escalation between the US and Iran following Tuesday's US midterm elections.
Tim Waterer, chief market analyst at KCM Trade, noted that the slide was a technical correction paired with optimism surrounding peace talks. "Oil is seeing a technical pullback this morning after last week’s strong gains," Waterer said, according to Reuters.
"Lingering hopes of some form of diplomatic progress, combined with the absence of any meaningful military escalation over the weekend, have taken some of the immediate heat out of prices for now,” Waterer added.