Oil prices are falling this morning after yesterday's growth. The market is responding to attempts to renew US negotiations with Iran, although military risks remain in the Persian Gulf and Yemen. Brent futures.
$114.50 -0.7% WTI futures.
$101.74 -1.0%.
These are quotes as of 04:32 Moscow time, October 29, according to Reuters. 1. Once again, the US is trying to renew negotiations with Iran. According to the Wall Street Journal, Vice President J. Dee Vance sent a letter to the Iranian leadership. Qatar presented a new draft agreement, but the Iranian side considered the proposals unacceptable. 2. The Houthis continue to attack Saudi Arabia. On October 28, reports were received of an attack at the Aden airport. Earlier, the Houthis announced a missile attack on the largest Saudi refinery with a capacity of 550,000 barrels per day. The Saudi authorities did not confirm the defeat of the plant. On the morning of October 29, the coalition reported the interception of a ballistic missile aimed at the eastern part of the kingdom. 3. Oil reserves in the US have dropped unexpectedly. According to this data for the week ending October 23: Crude oil: -1.9 million barrels compared to a slight increase expected.
Gasoline: +3.9 million barrels compared to the predicted decrease. The signals are multi-directional. And further down the list: before the American blockade of Iran's ports in April, there were about 150 million barrels of oil in Iran's floating storage facilities. By mid-October, according to Kepler, the volume of oil in floating storage outside the blockade zone had dropped to 866,000 barrels. Another 43 million barrels remain blocked within the restricted area. The flow of cheap Iranian oil to China has almost dried up. Beijing loses not only a source of raw materials with significant discounts, but also an important advantage in negotiations with other suppliers. In this confrontation, Washington won in another round. Moreover, Kepler analysts admit that by mid-December, Iran's oil revenues could all but dry up, given the delays in payments from Chinese buyers. At the same time, the oil market remains expensive.