Oil Prices Drop Over $1 on Diplomatic Progress and Rising Supplies

Crude oil benchmarks fell more than $1 per barrel on Thursday as optimism over peace talks in the Middle East and Ukraine reduced supply risk premiums. Brent crude declined $1.14, or 1.2%, to $91.62 per barrel, while U.S. West Texas Intermediate dropped $1.04, or 1.2%, to $85.49 per barrel. Pressure mounted following a major prisoner exchange agreed by Russian and Ukrainian negotiators in Abu Dhabi and reports that Washington is exploring direct diplomatic talks with Iran. Bearish sentiment was further reinforced by an unexpected 9 million-barrel build in U.S. crude stockpiles and higher October OPEC+ production led by Saudi Arabia.