Texas oil falls 1.8% to $101.79 after the proposal to resume dialogue between the U.S. and Iran

NEW YORK. — Texas oil fell 1.81% on Tuesday to $101.79 per barrel after Qatar and Pakistan presented a proposal to resume negotiations between the United States and Iran, according to the Qatari outlet Al Araby al Jadeed, cited by AlbertoNews.

At the close of the session, November WTI futures contracts, the U.S. benchmark, were down $1.87 from the previous close. December Brent crude fell 0.69% to $108.79 per barrel, after reaching an intraday high of $111.99, its highest level since May.

The U.S. crude market experienced a volatile session and WTI reached $110 per barrel intraday, its highest level since April. The price then fell after Al Araby al Jadeed reported that Qatari and Pakistani mediation teams had achieved progress in their efforts to reduce hostilities in the Middle East.

According to sources familiar with the mediation quoted anonymously by the outlet, the proposal meets the demands of both sides and was presented to Iranian authorities on Tuesday by Pakistan's Army Chief, Asim Munir, who visited Tehran today in an attempt to relaunch the stalled negotiations.

"It has U.S. approval and has also received a positive response and prior approval from Iran," one of the sources cited by the outlet said. The proposal includes a "partial response" to Iran's demand to recover funds frozen in Qatari banks, through the delivery of the interest generated by those assets —valued at $6 billion— as well as measures related to Iran's nuclear program.

Tuesday's drop reflects that crude prices "remain entirely dominated by geopolitics," analyst Tom Essaye said in his Sevens Report, adding that "more volatility should be expected."

Photo: AlbertoNews

Source: AlbertoNews.