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The Emirates News Agency reported that Brent crude futures declined 4.55 percent to $98.83 a barrel by 2234 GMT on Monday. West Texas Intermediate crude settled at $92.03 a barrel after a similar slide. The agency tied the move to easing geopolitical tensions that had previously supported prices.
According to Reuters, progress in talks between the United States and Iran helped cool concerns over potential supply interruptions from the region. US officials indicated that discussions in Qatar had advanced positively. This assessment contributed to the broad sell-off across energy markets on the day.
The International Energy Agency’s latest monthly report placed global oil demand growth on track to average 1.2 million barrels per day for the year. That forecast provided traders with a baseline against which to weigh the impact of any additional supply from diplomatic breakthroughs. Regional benchmarks reflected the shift as trading volumes increased.
US Energy Information Administration figures showed commercial crude inventories at multi-year lows entering the week. Those tight stock levels had limited downside in prior sessions before the diplomatic news triggered profit-taking. Weekly inventory updates remained a focus for participants monitoring the physical market.
A research note from Goldman Sachs adjusted near-term price expectations lower following the reports from Qatar. The bank estimated that resolved tensions could add as much as 500,000 barrels per day to available supply within months. Market observers noted the speed of the price adjustment as evidence of positioning shifts.
The decline extended losses from the previous trading session and brought cumulative drops above 6 percent in two days. Brent crude had exceeded $103 a barrel earlier in the week before reversing course. The Emirates News Agency said the Monday move aligned with broader commodity trends responding to reduced risk premiums.
