Oil prices drop over 1% on hopes for Middle East, Russia-Ukraine ceasefires

Oil prices fell more than one dollar on Thursday amid hopes for ending the Middle East conflict and the Russia-Ukraine war. Brent crude futures dropped $1.14, or 1.2%, to $91.62 per barrel by 0141 GMT, while U.S. West Texas Intermediate crude fell $1.04, or 1.2%, to $85.49. Analysts attributed the decline to expectations of behind-the-scenes efforts for a Russia-Ukraine ceasefire and reduced likelihood of escalation with Iran before next week's U.S.-China summit. However, uncertainty over the Strait of Hormuz may limit further drops. Russian and Ukrainian negotiators agreed on a large prisoner exchange in Abu Dhabi, though territorial disputes remain. OPEC+ crude production jumped in October, driven by a sharp Saudi output increase despite ongoing Hormuz shipping disruptions. U.S. crude inventories reportedly rose by 9 million barrels last week, with official data expected Thursday after a one-day delay due to a U.S. holiday.