FILE PHOTO — Fuel prices are displayed on a board at a gas station. (is associated with: «Oil prices fall as report of US diplomatic efforts eases Iran fears») Sina Schuldt/dpa
Oil prices fell sharply on Monday after a media report about US President Donald Trump’s diplomatic efforts to resolve the conflict with Iran eased fears of a resumption of US military strikes in the near future.
Brent crude futures for January delivery fell by around 3% to $110 per industry standard 159-litre barrel in early trading compared with Friday.
The December Brent contract expired, making the January contract the nearest-month futures contract. The December contract had closed at almost $118 a barrel on Friday.
Meanwhile, the OPEC+ group of oil-producing countries agreed over the weekend to keep production quotas unchanged in December.
The group had already reversed its latest voluntary production cuts in September. However, the decision is largely symbolic given the war in Iran. Ongoing fighting in the Middle East, including attacks in the Red Sea, continues to threaten oil exports and production facilities across the region.