Oil prices fell more than 7 percent on Nov. 2 as diplomatic efforts between Washington and Tehran eased fears of further disruptions to Middle Eastern supplies.
Brent crude futures for January delivery settled $8.66, or 7.6 percent, lower at $104.77 a barrel.
U.S. West Texas Intermediate crude for December delivery fell $7.66, or 7.4 percent, to $96.46.
Brent’s December contract had reached $118 on Oct. 30, its final trading day.
The January contract settled at $113.43 that day.
The decline followed reports that U.S. President Donald Trump wanted to give diplomacy more time before deciding whether to resume major strikes on Iran after the Nov. 3 midterm elections.
Qatar has been mediating between Washington and Tehran. Iran has linked reopening the Strait of Hormuz, a key route for Gulf oil shipments, to the United States lifting its naval blockade of Iranian ports.
ING strategist Francesco Pesole said oil prices included a substantial geopolitical risk premium, with softer rhetoric from both sides helping push crude lower.
Supply risks remained, however, following months of disruption to shipping and attacks on energy infrastructure.
Raymond James analyst Pavel Molchanov cautioned that previous diplomatic efforts had repeatedly raised hopes without producing a lasting resolution.
Seven OPEC+ producers, including Saudi Arabia and Russia, agreed on Nov. 1 to keep their December production targets unchanged, extending a pause in output increases.
