XLE & Oil

Oil prices fall as traders hope for diplomatic progress in Middle East

CNBC·Oct 20, 2026 · 10:32 AM CT
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Crude prices pulled back Tuesday on hopes for diplomacy between Washington and Tehran. The expiring November WTI contract fell 0.9% to $102.75 after touching $110.48, while December WTI slipped 1% to $97.50.

Brent for December fell 1% to $108.31, off a session high of $111.99.

Tensions remain high: at least 18 vessels have come under fire near the Strait of Hormuz in two weeks, per Kpler, and Iran's Revolutionary Guard said two "non-compliant" tankers were set ablaze after hitting mines. President Trump has said U.S. forces won't attack Iran before the Nov. 3 midterms.

PVM analyst Tamas Varga said front-month WTI strength reflects a tight market as Middle East exports fall.

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