Oil prices fall nearly 4% on Monday

Oil prices fell nearly 4 per cent on Monday as diplomatic efforts between Iran and Qatar raised hopes of easing supply disruptions linked to the US-Israeli war on Iran.

Brent crude fell 3.7 per cent to $109.23 per barrel, while US West Texas Intermediate (WTI) dropped 3.8 per cent to $100.14 by 0900 GMT.

The decline followed talks between Iranian and Qatari officials in Doha on Sunday, while the absence of major military escalation over the weekend also eased market concerns.

However, risks to global supplies remain amid attacks on oil tankers and disruptions to shipments through the Strait of Hormuz. Saudi Arabia also increased crude exports in October compared with September despite Houthi attacks on its energy infrastructure.

Meanwhile, the CEO of Abu Dhabi National Oil Company (ADNOC) said the conflict had depleted global inventories by nearly 1 billion barrels since it disrupted shipping through the Strait of Hormuz.

Despite Monday’s decline, Goldman Sachs raised its oil price forecasts, warning that Brent could reach $140 per barrel in 2027 if Gulf production remains 3.5 million barrels per day below its 2025 average.