The futures price of Brent crude oil in global markets decreased by $3.68, equivalent to 3.2%, reaching $109.75 per barrel. Additionally, West Texas Intermediate crude oil in the U.S. also fell by $3.43, or 3.3%, trading at $100.69 per barrel. This price drop comes as Brent oil ended October at its highest level in the past six months.
Oil Market Analysis and Factors Affecting Prices
Seyed Abbas Araghchi, Deputy Foreign Minister, referred on Sunday to ongoing consultations with Qatari mediators regarding the two-day Hormuz Strait plan, stating: "Consultations are ongoing, but we have not yet reached a definitive conclusion, as this conclusion depends on the responses the other side provides to our questions."
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Tim Waterer, senior market analyst at KCM Trade, stated: "Oil is experiencing a price correction this morning after significant growth last week." He continued: "Ongoing hopes for some diplomatic progress, along with the absence of any serious military escalation over the weekend, have currently eased the immediate pressure on prices."
Forecasts and Outlook for the Oil Market
However, Waterer noted that the market remains vigilant regarding the potential for increased tensions following the U.S. midterm elections. He added: "The tone and statements surrounding Iran may become harsher, pushing Brent oil prices towards $120." These forecasts come as recent reports indicate that the Organization of the Petroleum Exporting Countries and its allies, including Russia, maintained their December production targets on Sunday. This expectation confirms that further changes to this group's production policy will not occur until next year.
In this context, the group continues to grapple with export disruptions caused by the war against Iran, which could impact the balance of supply and demand in the global oil market. Overall, the current state of the oil market is influenced by various factors, including political, economic, and military developments in the region, as well as OPEC and its allies' production policies.
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