The decrease in Brent and WTI crude oil prices in the global market was observed on Tuesday (November 9) due to reduced concerns about conflicts in the Middle East and supply disruptions from the region. The price of North Sea Brent crude fell by 70 cents or 0.75% to $91.88 per barrel. Meanwhile, the price of WTI crude oil in the United States also decreased by 78 cents or 0.90% to $86.07 per barrel.
Oil Market Status and Its Impacts
The price of Brent crude recorded its lowest level since August 31 (September 9) with a 5.85% decrease in trading on Monday (November 8). This price drop was due to changes in market perceptions regarding the global political and economic situation, particularly the mild tone of Donald Trump, the President of the United States, following the midterm elections. Analysts believe that these changes could impact oil market performance and lead to price reductions.
Increase in OPEC Oil Production
According to studies, OPEC oil production increased in October, with the main reason for this production growth being increased oil activities in Saudi Arabia, Kuwait, and Iraq. This increase has occurred while export restrictions remain in place. The price of Brent oil reached its highest level in six months at $118 per barrel on October 30 (November 8). However, since then, the price of Brent crude oil has decreased by about 22%.
Analysts believe that this price drop is due to easing concerns about the potential escalation of conflicts in the Middle East following the U.S. midterm elections. Nevertheless, there are still concerns about disruptions in shipping traffic that could impact the oil market. Gregory Brew, a senior analyst at the Eurasia Group, commented on this situation, saying: "Despite the recent widespread selling, it seems unlikely that Brent oil prices will fall below $90 per barrel unless more sustainable signs of reduced tensions and an agreement to end the conflicts emerge."
