On Tuesday, oil prices faced a decline, reaching $114.70 for Brent oil. This drop was due to an increased likelihood of reaching an agreement to end the U.S. and Israel's war against Iran, which reduced concerns about oil supply disruptions. However, Brent oil prices remained close to their highest level in the past six months.
Analysis of Brent and West Texas Intermediate Oil Prices
The price of Brent oil fell by more than a dollar, equivalent to 0.57%, reaching $114.70 per barrel. Meanwhile, U.S. West Texas Intermediate crude also traded at $100.70 per barrel, down one dollar, or one percent. This price drop occurred while the outlook for peace in the region appears fragile.
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Ansarullah Attacks and Their Impact on the Oil Market
Recent attacks by Ansarullah against Saudi Arabia, one of the world's major oil producers, have heightened concerns about the stability of the oil market. According to data collected by a Washington-based think tank, October has been recognized as the worst month in terms of the number of attacks on commercial vessels in the Strait of Hormuz and adjacent waterways. Before the onset of hostilities in February, about one-fifth of the world's energy supply passed through this narrow waterway.
Last week, following a wave of Iranian attacks on tankers around the Strait of Hormuz, Brent oil prices surged to over $117 per barrel, marking the highest level since April. Additionally, Brent prices also reached the $117 range again on Monday.
In another development, two industry sources close to the matter reported that Russian refineries are increasing diesel production in October. This decision follows an agreement between the Kremlin and the U.S. regarding the supply and issuance of export quotas.
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