The price of Brent and WTI crude oil has reached $104.08 and $96.66 per barrel, respectively, in trading on Tuesday (November 3) due to concerns over escalating conflicts in the Middle East and disruptions in oil supply from producers in the region.
Details of the Oil Price Increase
The price of Brent crude oil increased by 3 cents or 0.03 percent to $104.08 by 3:55 AM GMT. Additionally, U.S. WTI crude oil traded at $96.66 per barrel, up 20 cents or 0.21 percent. On Monday (November 2), the prices of both oil benchmarks had dropped by more than 7 percent due to hopes for a reduction in tensions in the Middle East.
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Oil Market Analysis
Tim Waterer, senior market analyst at KCM Trade, stated that the risk of tensions has once again increased the risk in oil prices. Meanwhile, Priyanka Sachdeva, head of market outlook at Phillip Nova, noted that the lack of further price increases indicates that significant geopolitical risk is already factored into oil prices. She emphasized that unless there are tangible signs of further disruptions in physical supply or critical energy infrastructure, the release of new reports on regional developments alone will not be sufficient to sustain the upward trend in oil prices.
The onset of the U.S. and Israeli regime's war against Iran in late February of this year has disrupted traffic through the Strait of Hormuz, a passage for about one-fifth of the world's crude oil and liquefied natural gas (LNG) supply. Additionally, the war against Iran is recognized as one of the main reasons for rising gasoline prices in the U.S., which is a burden on voters. In this context, Donald Trump, the President of the United States, is under pressure to end this conflict.
Brent oil ended October at its highest price in the past six months, with this price increase attributed to concerns over escalating tensions in the Middle East.
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