Oil prices drop as Middle East tensions ease and Russia-Ukraine talks progress

Oil prices fell more than $1 per barrel on November 12 as reduced fears of Middle East conflict escalation lowered the risk premium in oil markets, while rising OPEC+ output and US inventories heightened supply glut concerns. Brent crude futures dropped $1.47, or 1.58%, to $91.29 per barrel, and US West Texas Intermediate futures fell $1.24, or 1.43%, to $85.29. Traders cited expectations of Russia-Ukraine ceasefire efforts and hopes that the Iran war won't escalate before next week's US-China summit. Russian and Ukrainian negotiators agreed on a large prisoner exchange during two-day peace talks in Abu Dhabi ending November 11, though territorial disputes remain. Iran's security chief warned against new US strikes, while OPEC+ production rose in October and US crude inventories increased by 9 million barrels last week.