Energy Watch: Waiting game
Oct 29 (Reuters) - Oil prices eased on Thursday as hopes for renewed diplomacy between the United States and Iran helped cool fears of a wider Middle East conflict. Even so, at around $115 a barrel, Brent crude remains roughly $10 above its September average, underscoring persistent market anxiety.
Washington appears eager to test the diplomatic route once again. The Wall Street Journal reported that US Vice President JD Vance sent a letter to Iranian Security Council chief Mohsen Rezaei aimed at reviving negotiations. At the same time, however, Iran is said to have rejected a Qatari-mediated draft proposal to end the war, while Tehran-backed Houthi forces continue their attacks on Saudi Arabia.
If this sounds familiar, that's because it is.
President Donald Trump has repeatedly said he is weighing renewed military action against Iran versus a negotiated settlement. He could also opt to maintain the current pressure campaign by keeping restrictions on Iranian oil exports in place, believing the slow squeeze on Tehran’s resources will ultimately force the government to the negotiating table.
Any clear decision is unlikely to come until after the November 3 midterm elections. So for now, Tehran and Washington remain far apart, suggesting any breakthrough is unlikely and any negotiations will be difficult and protracted.
While the Middle East crisis continues to dominate oil and gas headlines, Canada is quietly revolutionizing its energy strategy. Taking a page from Saudi Arabia's playbook, Ottawa is adapting to a world of tighter, more politicised energy supplies and shifting trade flows. More on that in my latest column.
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In other news:
Shell and TotalEnergies reported sharply higher third-quarter profits and increased their share buybacks, as war-driven energy prices and record-high refining margins helped both beat expectations.
An oil spill off the United Arab Emirates has prompted temporary restrictions on fishing and on access to several beaches, while also raising concerns about the potential impact on desalination plants.
Australia's Woodside Energy will supply QatarEnergy with LNG from its Louisiana project under a 20-year deal, as the Hormuz blockade and war damage disrupt output at one of the world's largest LNG producers.
Across key markets in Europe and Asia, power producers appear to be increasingly bypassing natural gas in favour of other options, ROI Energy Transition Columnist Gavin Maguire recently wrote.
Asia Commodities Columnist Clyde Russell looks at how the Western world is starting to reel in China's massive lead in producing and controlling the refined metals critical to defence, the energy transition and the AI investment boom.
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