The price of North Sea Brent crude on Monday, November 1, fell by $3.68 to $109.75 per barrel. Additionally, U.S. West Texas Intermediate crude also decreased by $3.43, trading at $100.69. This price drop was due to investors' hopes for diplomatic progress and a reduction in tensions in the Middle East.
Oil Market Analysis
Tim Waterer, senior market analyst at KCM Trade, stated that oil prices declined at the beginning of trading on Monday after a significant rise the previous week. He noted that hopes for diplomatic advancements have eased pressure on prices. In this context, OPEC+'s decision to maintain production levels in December indicates no change in the supply policy of this coalition.
Read more: 7.972% Decline in Brent Oil Prices in the Global Market
Price Fluctuations in the Following Days
Despite the price drop on Monday, oil prices saw a limited increase in trading on Tuesday. Brent rose by three cents to $104.08, and West Texas Intermediate increased by 20 cents to $96.66. This rise occurred despite both oil benchmarks having dropped more than 7% on Monday.
On Wednesday, Brent oil prices increased by 82 cents to $104.42, while West Texas Intermediate rose by 50 cents to $96.59. The unexpected decrease in U.S. crude oil inventories by 5.27 million barrels for the week ending October 30, contrary to analysts' expectations of an increase of 880,000 barrels, helped support prices.
Final Oil Market Analysis
On Thursday, oil prices continued their upward trend, with Brent reaching $96.15 and West Texas at $88.64. However, over the week, both oil benchmarks faced significant declines, with Brent down about 15% and West Texas down 13%. Hopes for an end to the Iran war following the results of the U.S. midterm elections were the main reason for the price drop.
Ultimately, the oil market last week was influenced by two opposing forces. On one hand, hopes for a reduction in tensions from the Iran war led to a sharp decline in prices, while on the other hand, disruptions in the Strait of Hormuz and attacks on oil tankers prevented the stabilization of the downward trend in the market.
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