Oil Futures Slip as Traders Weigh Middle East Diplomacy Hopes

Oil prices fell Tuesday, with U.S. benchmark crude slipping back below $100 a barrel as traders held out hopes for diplomatic efforts to ease Middle East tensions. December Brent crude futures settled down 1.7% at $113.88 a barrel, and December West Texas Intermediate fell 1.8% to $99.90 a barrel. The pullback was likely influenced by profit-taking after speculative investors had been loading up long positions, said Robert Yawger, commodity specialist at Mizuho Securities USA. "The possibility of a peace deal in Iran is putting pressure on prices," he said. Iran, Saudi Arabia, Pakistan and Turkey agreed to continue talks on regional peace and security after senior officials met in Tehran on Monday, according to a joint statement. Oman said discussions with Iran produced an outline for a temporary arrangement to restore free navigation through the Strait of Hormuz, though political obstacles remain, Foreign Minister Badr Albusaidi said Monday. BOK Financial's Dennis Kissler said prospects for Russia-Ukraine talks next month also eased prices, though tight global supplies and increasing U.S. military presence in the Persian Gulf persist.