The key facts

  • Brent fell 3.07% to $106.18 per barrel, retreating nearly $6 from the session high near $112
  • Reports of a compromise proposal by Qatar and Pakistan with IAEA inspections; the information has not been independently confirmed
  • European gas fell 3% to €85.30/MWh; storage stands at 74.47% of capacity, below the norm

Sharp Oil Price Retreat

Brent crude fell about 3% to around $106 per barrel on Tuesday, October 20, reversing gains made earlier in the session, when the price approached $112. According to Anadolu data as of 14:40 GMT, Brent traded at $106.18 per barrel, down $3.37 (3.07%) from the previous close. The retreat amounted to almost $6 from the intraday high.

Diplomatic Factor

The price decline coincided with reports of diplomatic efforts involving the US and Iran. According to sources, Qatar and Pakistan presented a compromise proposal that, it is claimed, received preliminary approval from Washington and Tehran and provides for confidential IAEA inspections at Iranian nuclear facilities. The proposal itself could not be verified independently.

Monthly and Yearly Dynamics

Despite Tuesday's decline, Brent remains about 6.8% above its level of a month ago and almost 75% above its level of a year ago.

European Gas and Storage

Natural gas prices in Europe also fell 3% to €85.30 ($95.80) per MWh, retreating from their highest level since December 2022 amid hopes for a diplomatic resolution of the war in Iran. At the same time, limited LNG supplies from the Persian Gulf continue to raise concerns about Europe's ability to replenish storage before winter. Gas storage in Europe stood at 74.47% of capacity on Monday — below the typical level for this time of year.