Oil prices settled lower on Tuesday as renewed confidence in Middle Eastern supply curbed earlier gains, with Brent crude briefly falling below the $100 mark on hopes of progress in U.S.-Iran diplomatic talks and signs of recovering Saudi exports.
U.S. crude clung near $99.50, hovering close to oversold territory, while Brent hovered in the $100.55 to $103.09 range across live snapshots before retreating toward the psychologically important $100 level.
The pullback came after crude had fallen more than 9% over the preceding four trading sessions, erasing a near-20% surge during a two-week winning streak earlier in the period. Oil had posted weekly losses on Friday before attempting a recovery on Tuesday amid anticipated developments in U.S.-Iran negotiations.
Supply-side pressures also eased. In September, China, acting on a request from Saudi Arabia, asked Iran to urge Houthi fighters to limit attacks on Saudi oil facilities. Houthi forces had been pushing to seize strategic heights in Yemen during the same period, adding to supply risk concerns that have weighed on markets.
The shift in sentiment marks a notable turn for crude, which had surged nearly 20% during its earlier win streak before posting weekly losses. The combination of improving geopolitical risk assessments and rising Saudi crude flows has tempered the urgency that had driven recent price spikes.
Broader commodity markets showed mixed signals. Silver futures traded at $67.16, up 0.02%, while the precious metal remained confined to a chop zone between $65.50 and $67.50 near support, with resistance noted at $68.00. Gold hovered at $4,383, trapped within a descending triangle pattern. Copper touched near all-time highs but faced a double-top warning and tested 61.8% Fibonacci resistance at $6.70.
Natural gas faced headwinds: European and British wholesale gas dropped more than 2% on Monday, while U.S. gas consolidated near $2.90 after testing key support at $2.83. Meanwhile, U.S. diesel hit a record $6.50 per gallon on a global supply crunch.
Central bank developments continued to draw attention. Bank of Canada Governor Tiff Macklem warned that Canada faces a growth squeeze, even as the Fed and ECB navigate evolving inflation and rate decisions. On the policy front, President Donald Trump stated Washington is exploring a deal to purchase potash from Belarus.
In trade developments, Canada expressed optimism about concluding trade negotiations with India by year-end, reported from Mumbai.
