Brent closes steady at US$108.82 a barrel on October 21
US crude stocks fell more than expected as oil traders weighed possible Russia–Ukraine peace talks against continuing attacks on Gulf shipping.
- Brent crude settled nearly flat at US$108.82 a barrel, an increase of just three cents, after surrendering earlier gains of more than US$2 during the trading session.
- Downward pressure on prices was attributed to news that Russia agreed to resume U.S.-mediated peace talks with Ukraine, raising hopes of easing global energy supply tightness.
- Prices found support from a much larger-than-expected drop in U.S. crude inventories, which fell by 3.06 million barrels against forecasts of an 820,000-barrel decline.
- Ongoing geopolitical risks, including the absence of U.S.-Iran dialogue and continued attacks on oil tankers in the Gulf region, also helped prevent prices from falling further.
Brent crude edged up to US$108.82 a barrel and US West Texas Intermediate (WTI) fell to US$97.15 on Wednesday (October 21, 2026), as traders weighed possible Russia–Ukraine peace talks against lower US oil stocks and the absence of US–Iran dialogue. Both benchmarks surrendered earlier gains of more than US$2 a barrel.
Brent’s October 21 settlement was three US cents, or 0.03%, higher, while WTI ended 67 US cents, or 0.7%, lower. Brent had traded close to a five-month high earlier in the session.
Brent reached a five-month high and WTI a six-month peak during the October 20 session before retreating following discussions about mediation at a meeting in Tehran between Iranian President Masoud Pezeshkian and Pakistan’s army chief.
US crude stocks fall more than expected
US crude inventories declined by 3.06 million barrels to 412.5 million barrels in the week ending October 16, according to figures released by the US Energy Information Administration (EIA) on October 21. Analysts surveyed by Reuters had expected a much smaller reduction of 820,000 barrels.
US distillate inventories, which include diesel and heating oil, moved in the opposite direction. EIA figures showed an increase of 1.68 million barrels to 104.3 million barrels in the week ending October 16, against expectations for a fall of 1.16 million barrels.
Putin agrees to resume US-mediated Ukraine talks
Russian President Vladimir Putin agreed to resume US-mediated peace talks with Ukraine as early as November, the Kremlin said after Putin met US envoy Steve Witkoff. The meeting formed part of Washington’s latest effort to end Europe’s bloodiest conflict since the Second World War.
Dennis Kissler, senior vice-president of trading at BOK Financial, said apparent progress in US–Russia discussions over a possible Ukraine settlement had been weighing on crude prices. Kissler said a peace agreement “could unlock the tight global diesel supplies”, easing a shortage that had helped drive oil prices higher in recent weeks.
Iran sets conditions for dialogue as shipping attacks continue
Iranian President Masoud Pezeshkian told state media on October 21 that Washington could not expect dialogue while blockading and threatening Iran. Iranian Foreign Minister Abbas Araqchi separately told the Financial Times that Iran was fully prepared to defend itself.
Kpler data cited on October 21 showed at least 18 attacks on vessels over the preceding two weeks. Analysts at the London Stock Exchange Group warned that Iran was targeting tankers beyond the Strait of Hormuz and into the Gulf of Oman, threatening Gulf crude loadings and the ship-to-ship transfers supporting regional shipments.
BOK Financial’s Kissler wrote in a client note earlier on October 21 that crude futures were moving between gains and losses but remained well below their overnight highs. Kissler pointed to apparently continuing attacks in the Strait of Hormuz, with at least two more ships struck overnight.
The Iran-aligned Houthis claimed responsibility on Monday (October 19) for attacks on a Saudi Aramco site in Yanbu, the Shaybah oilfield, and airports in Riyadh and Abha.
US offers heating oil loans to ease price pressures
The Trump administration was offering to lend up to almost a third of the one-million-barrel US emergency heating oil reserve, the US Department of Energy announced on October 21. The move aimed to contain prices driven higher by diesel shortages linked to the wars in Iran and Ukraine.
Two US Energy Department officials had said on October 20 that they were working with refiners worldwide to increase fuel production.
