The global crude oil price significantly decreased on Monday as traders expressed optimism regarding the Qatar-led negotiations aimed at ending the imposed war against Iran. Brent crude oil fell by $3.68, equivalent to a 3.2% decrease, reaching $109.75 per barrel. Additionally, U.S. West Texas Intermediate crude oil also dropped by $3.43, or 3.3%, trading at $100.69 per barrel.
End of October for Brent Oil
Brent oil ended October at its highest level in the past six months. Seyyed Abbas Araghchi, Deputy Foreign Minister, mentioned on Sunday that consultations with Qatari mediators regarding the two-day Strait of Hormuz plan are ongoing, stating: "Consultations are in progress, but we have not yet reached a definitive conclusion as this result depends on the responses that the other party provides to our questions."
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Market Analysis and Future Outlook
Tim Waterer, senior market analyst at KCM Trade, referred to the changes in oil prices and stated: "After significant growth last week, oil is witnessing a price correction this morning." He added: "The continued hopes for some diplomatic progress, along with the absence of any serious military escalation over the weekend, have currently eased the immediate pressure on prices."
However, Waterer noted that the market remains alert to the possibility that after the U.S. midterm elections, the tone and statements regarding Iran may become harsher, pushing Brent oil prices towards $120.
According to reports, the Organization of the Petroleum Exporting Countries and its allies, including Russia, maintained their December production targets on Sunday, confirming expectations that further changes to the production policy of this group will not occur until next year, as they continue to grapple with export disruptions caused by the war against Iran.
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