Dhar says near-term inventory-depletion risks for oil have declined

Asian oil decline likely reflects a technical correction

Commonwealth Bank of Australia’s Vivek Dhar said inventory-depletion risks for oil had declined in the near term. In a note, Dhar said oil flows from the Middle East had reportedly tracked back to around prewar levels.

Dhar said the flow levels could be high enough to support a rebuild of global oil and refined-product stockpiles.

The Wall Street Journal described the Asian-session decline in oil prices as a likely technical correction after Brent futures ended last week at their highest level since April this year. Dhar said the increase in Brent futures last week reflected growing supply fears, noting recent attacks in Saudi Arabia.

At 0211 GMT, LSEG data showed the December Brent contract down 1.5% at $115.01 a barrel and the WTI contract for December delivery down 1.7% at $101.49.

At 0830 GMT, oil futures were down more than 1% in early European trading as traders weighed diplomatic efforts to end the Iran war against renewed Houthi attacks on Saudi Arabia. December Brent crude, which expires Friday, fell 1.4% to $115.04 a barrel, the January contract fell 1.4% to $110.15, and WTI futures slid 1.9% to $101.27.

Middle Eastern mediators have been seeking to revive negotiations between Washington and Tehran, though regional tensions remained elevated.

A Saudi-led coalition said Monday that it had intercepted a ballistic missile launched by the Houthis toward Riyadh.

President Trump told Fox News on Sunday that it was getting to be decision time on whether he would make a deal with Tehran or “finish it off.”