Oil Futures Slide as Diplomatic Talks Ease Middle East Supply Fears

December NYMEX West Texas Intermediate crude fell $1.70 to $100.05 per barrel by 11:35 a.m. ET, while the January contract dropped $1.15 to $98.30. International benchmark Brent crude for December delivery mirrored this decline, sliding $1.90 to $113.90 per barrel, with January contracts down $1.30 to $109.45. Refined products followed the downward trend; December ULSD contracts shed 9 cents to $4.6455 per gallon, and December RBOB gasoline futures decreased by 4.6 cents to $3.0860 per gallon.

Prices had initially climbed earlier in the session following reports that a Saudi-led coalition intercepted three ballistic missiles and four drones launched by Houthi militia toward Saudi territory. However, the market soon recalibrated after Iran, Saudi Arabia, Pakistan, and Turkey signaled a commitment to regional security talks. Saudi officials confirmed the discussions aim to lower tensions and support mediation efforts by Qatar and Pakistan, effectively cooling the risk premium previously baked into global oil supplies.