Daijiworld Media Network - New Delhi
New Delhi, Nov 10: Global crude oil prices declined by more than one per cent on Tuesday, extending losses from the previous session after US President Donald Trump indicated that Washington would temporarily hold off on fresh military strikes against Iran, easing concerns over prolonged disruptions to energy supplies from the Middle East.
Brent crude futures fell $1.24, or 1.33 per cent, to $91.33 per barrel, while US West Texas Intermediate (WTI) crude futures declined $1.31, or 1.5 per cent, to $85.54 per barrel.
Brent crude had settled 5.85 per cent lower in the previous session after touching its lowest level since August 31.
Market experts said crude prices remained under pressure amid signs of diplomatic progress in the Middle East. However, continuing geopolitical tensions and uncertainty surrounding the security of key shipping routes could limit further declines.
Investors are also awaiting monthly oil supply and demand reports from the US Energy Information Administration (EIA), the Organisation of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) for fresh indications on the global demand and supply outlook.
Meanwhile, Russian and Ukrainian officials are scheduled to hold two days of US-brokered talks beginning Tuesday. These will be their first such discussions since February.
According to reports, Trump indicated that he would postpone further military strikes against Iran following appeals from regional countries, including Qatar. He made the remarks after meeting Qatar's Prime Minister at the White House.
However, the US President said the naval blockade in the Strait of Hormuz would remain in place for now, keeping concerns alive over the security of one of the world's most important energy supply routes.
Senior US and Gulf officials have also expressed doubts about the possibility of an immediate peace agreement between Washington and Tehran, according to reports.
Adding to the uncertainty, Iran's security council chief Mohsen Rezaei rejected reports of ongoing negotiations and accused the US of spreading what he described as fake news about imaginary talks.
Meanwhile, gold prices also edged lower on Tuesday, trading at around $4,120 per ounce, as investors awaited a key US inflation report for clues about the Federal Reserve's future monetary policy direction.