On Friday, Brent crude oil price reached $99.69 per barrel, indicating a 1.42 percent increase. Additionally, West Texas Intermediate crude oil was traded at $91.45 per barrel, up by 1.03 percent. This price increase comes as the oil market is poised to record its largest weekly decline since April 2020.
Analysis of Oil Price Fluctuations
Since the beginning of this week, Brent oil prices have decreased by about 15 percent and experienced significant volatility. These price fluctuations are due to various factors, including political tensions in the Middle East and changes in U.S. domestic policies. From Monday until now, oil prices have changed by about $19.
Factors Affecting Oil Prices
One of the main factors behind the decline in oil prices is the hope for reduced tensions and an end to the war in the Middle East following the announcement of the U.S. midterm election results. With the release of election results and strengthened expectations for a reduction in conflicts, both Brent and West Texas Intermediate oil benchmarks fell by more than 8 percent on Wednesday, reaching their lowest levels since August 31.
Conversely, former President Donald Trump's previous threats to resume attacks against Iran before the midterm elections were one of the factors that increased oil prices in October, bringing Brent to its highest level in six months. Now, the change in the political makeup of the U.S. Congress and Democratic control of both chambers has affected expectations regarding the continuation of military actions by the Trump administration.
However, restrictions on the export of petroleum products from the Gulf region continue to be supportive factors for prices. Additionally, the escalation of attacks by Ukraine on Russian refineries has also put pressure on the supply of petroleum products in the global market.
Thus, the oil market finds itself in a situation between two opposing forces; on one hand, the possibility of reduced military tensions and increased supply could put pressure on prices, while on the other hand, disruptions in the export of petroleum products and damage to Russia's refining capacity continue to support prices.
Read more: New attacks on oil tankers caused an increase in oil prices · Fluctuation of oil and energy prices in global markets
