Key Points
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Brent crude trades at $94.02 a barrel, while US West Texas Intermediate (WTI) falls to $87.11.
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Both benchmarks extend their declines after Wednesday’s 8 per cent.
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Dubai crude remains above $101 and physical Murban near $101, reflecting the premium on Gulf oil.
ISLAMABAD: International oil prices kept on falling for a fourth consecutive session on Thursday, with Brent trading near $94 a barrel and WTI below $88.
The changing political expectations in the United States raised hopes of reduced military tensions with Iran.
At 04:16 GMT, Brent was quoted at $94.02 a barrel and WTI at $87.11. Compared with Wednesday’s settlements of $94.62 and $88.12, respectively, the benchmarks were lower by 60 cents and $1.01. The latest available Dubai crude quotation was $101.15 a barrel.
Wednesday’s sell-off accelerates the decline
The latest losses followed a particularly sharp fall on Wednesday, when Brent plunged $8.98, or 8.7 per cent, to settle at $94.62 a barrel. WTI dropped $7.97, or 8.3 per cent, to $88.12.
READ ALSO: Oil Prices Fall Again as Brent Slips Below $103
Both benchmarks ended the session at their lowest settlement levels since August 31, reversing much of the increase recorded during the recent escalation of the Middle East conflict.
Brent had approached $118 a barrel on Friday before the latest retreat gathered momentum. Its decline below $100 has removed a portion of the geopolitical risk premium built into international oil prices.
US election results reshape market expectations
The Democratic Party’s strong performance in the US midterm elections has changed market expectations about the political future of the conflict with Iran.
Investors are assessing whether the Republican losses will increase pressure on President Donald Trump to pursue a negotiated settlement rather than continue military confrontation.
Trump’s indication that Washington has no immediate plans for further strikes against Iran has also contributed to easing concerns about another escalation.
However, diplomatic progress remains uncertain. Iranian officials have indicated that the two sides remain far from an agreement, while the possibility of renewed military action continues to pose a threat to regional oil supplies.
Physical Gulf oil retains a substantial premium
Despite the decline in international benchmarks, physical oil prices in the Middle East remain considerably higher.
Dubai crude was quoted at $101.15 a barrel, while the latest available assessment of Abu Dhabi’s Murban crude stood at $100.89 on November 4, following a daily decline of $1.27, or 1.24 per cent.
The difference highlights the importance of Gulf supply conditions for Asian refiners, even as international benchmark prices retreat.
The Strait of Hormuz remains a critical factor in the market outlook. Any renewed disruption to shipping or oil production in the region could reverse the recent decline, while a sustained diplomatic breakthrough could further reduce supply-related concerns.
For oil-importing countries such as Pakistan, a prolonged decline in international oil prices could ease import costs and reduce pressure on the external account.
