WTI crude oil slips to $100.88 as Tuesday rebound fades

Key takeaways

• The December WTI contract (CL=F) traded at $100.88 at 11:04 UTC on October 27, down 0.86% from Monday's $101.76 settlement, after a 1.54% slide in 30 minutes, according to Yahoo Finance data.
• Earlier in the day WTI had rebounded as high as $102.82, so the late-morning drop erased the session's gains.
• The backdrop is Monday's talks in Tehran between Iran and Saudi Arabia, Turkey and Pakistan, which Reuters said raised hopes of easing Middle East tensions.
• No specific news trigger for the 30-minute drop has been confirmed by the sources reviewed.
• Houthi attacks on Saudi Arabia and reduced Strait of Hormuz flows continue to keep prices near six-month highs.

WTI crude oil futures fell 1.54% in 30 minutes to $100.88 a barrel at 11:04 UTC on Tuesday, wiping out an early rebound to $102.82 as traders weighed renewed Iran diplomacy against fresh Houthi attacks on Saudi Arabia. The exact trigger has not been confirmed.

What happened to WTI crude oil on October 27

The NYMEX December 2026 West Texas Intermediate contract, quoted on Yahoo Finance as CL=F, was down 0.86% from Monday's settlement of $101.76 at 11:04 UTC. Over the previous 30 minutes it had dropped 1.54%, based on the same Yahoo Finance data. A Yahoo Finance quote at 11:05 UTC showed $100.86, down $0.90 (0.88%), with a day range of $100.60 to $102.82.

The session has been a round trip. At 04:18 UTC, WTI was already down 88 cents, or 0.86%, at $100.88, while Brent was down $1 at $114.81, Amwal Al Ghad reported. Prices then recovered: a Reuters report published by The Express Tribune at 08:22 UTC said Brent had risen 40 cents to $116.24 and WTI 30 cents to $102.07, after both had fallen about 1% earlier in the session. By late European morning, WTI had slipped back to its early lows.

What we know

Diplomacy is weighing on prices. Saudi Arabia, Turkey and Pakistan held talks with Iranian officials in Tehran on Monday, and the four countries agreed to keep talking, according to Iranian state media as reported by Reuters. FinanceFeeds, citing CNBC, said Saudi Defence Minister Prince Khalid bin Salman met Iranian President Masoud Pezeshkian. Reuters said some early selling on Tuesday came from profit-taking on hopes of a US-Iran breakthrough. On Monday, Reuters reported via MarineLink, oil also fell as Qatari mediators travelled to Tehran.

Supply risks have not gone away. The Saudi-led coalition said its air defences intercepted three ballistic missiles fired toward Saudi Arabia's Eastern Province early on Tuesday, CBS News reported, citing AFP. A Houthi official also described Egypt's parliamentary authorisation to send troops to Saudi Arabia as a declaration of war on Yemen, according to the same live coverage. Reuters cited ANZ Research saying Gulf crude exports fell for a fourth straight week and Strait of Hormuz flows were about 60% of normal.

"Prices remain elevated amid persistent geopolitical uncertainties," Sugandha Sachdeva, founder of New Delhi-based SS WealthStreet, said, according to Reuters.

What we don't know yet

• The cause of the specific 30-minute drop to $100.88 has not been confirmed. None of the reports reviewed by 11:05 UTC tied that move to a single headline.
• Whether the Tehran talks will lead to a broader US-Iran de-escalation is unclear. The participants have only agreed to continue talks.
• The extent of any damage from the latest Houthi attacks on Saudi energy sites has not been independently verified.

Background: why oil is near six-month highs

Oil has been driven by the US-Israeli war with Iran, which began on February 28, and by disruption to shipping through the Strait of Hormuz and the Bab el-Mandeb Strait, Reuters reported via MarineLink. Brent rose above $117 a barrel last week, its highest since April, after Iranian attacks on tankers near Hormuz, according to Reuters. Bullquill's weekly oil brief tracked a 6.24% weekly gain in Brent to its October 23 settlement.

Reuters also cited a Washington-based think tank saying October has been the worst month for attacks on commercial shipping in and around the Strait of Hormuz. ANZ Research said global distillate inventories were nearly 5% below their five-year average, according to Reuters.

The timing adds to volatility. The Federal Reserve's two-day policy meeting began on Tuesday, with a decision due on Wednesday, October 28, at 2 p.m. EDT, according to FinanceFeeds. For how energy prices feed into inflation and interest rates, see our explainer on how oil price shocks hit inflation and rates.

What it means

Tuesday's swing shows how finely balanced the oil market is. Diplomatic headlines are taking some of the war-risk premium out of prices, while continued missile and drone attacks on Saudi Arabia and reduced Gulf exports keep a floor under them. WTI moved more than $2 between its session low and high before 11:05 UTC, a wide range for a day without a confirmed supply shock.

For consumers and businesses, prices around $100 for WTI and $115 for Brent keep fuel costs and energy inflation in focus ahead of the Fed decision. Earlier coverage of the same drivers is in our October 21 oil brief. Bullquill will update this story if a specific cause for the drop is confirmed.

This article is for information only and is not investment advice.