The futures price of Brent crude oil fell by $3.68, equivalent to 3.2%, reaching $109.75 per barrel. Similarly, the price of West Texas Intermediate crude oil in the United States decreased by $3.43, or 3.3%, to $100.69 per barrel. These developments come as Brent oil ended October at its highest level in the past six months.
Analysis of Factors Affecting Prices
Seyyed Abbas Araghchi, on Sunday, referred to ongoing negotiations with Qatari mediators regarding the two-day plan for the Strait of Hormuz, stating: "Discussions are ongoing, but we have not yet reached a definitive conclusion, as reaching a result depends on the responses provided by the other party to our questions." These remarks indicate that geopolitical tensions can still have a significant impact on the oil market.
Read more: 3% Decrease in Brent Crude Oil Price to $109.75
Tim Waterer, senior market analyst at KCM Trade, pointed to technical price correction, saying: "After significant growth last week, oil experienced a technical price correction this morning." He also added: "Hopes for diplomatic progress and the absence of any serious military escalation over the weekend have currently reduced immediate pressure on prices."
Oil Market Outlook
Despite the price decrease, Waterer emphasized that the market remains alert to the possibility of heightened rhetoric and statements regarding Iran following the U.S. midterm elections. This could drive Brent oil prices towards $120. According to available reports, the Organization of the Petroleum Exporting Countries and its allies, including Russia, left December production targets unchanged on Sunday. This indicates that no further changes in the production policy of this group are expected until next year, as they continue to face export disruptions due to the war against Iran.
Read more: Container shipping rates from Asia to the United States affected by demand and capacity · Significant increase in oil import costs in the European Union to €27.6 billion per month
