The global oil market experienced significant fluctuations last week due to geopolitical developments in the Middle East, concerns over disruptions in energy transit routes, and diplomatic developments between Iran and the United States. At the beginning of the week, oil prices trended downward with rising hopes of easing tensions, but the attack on Saudi oil facilities and tankers in the Strait of Hormuz once again heightened concerns about supply security and pushed prices to higher levels.
Oil Price Trends Last Week
An analysis of oil transactions shows that although news related to political negotiations occasionally prevented price increases, supply risks remained the main determining factor for market direction. Brent crude recorded a 13.6% increase by the end of October, while West Texas Intermediate saw a 15.2% rise.
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On Monday, November 4, oil prices decreased due to increased hopes for easing Middle Eastern tensions. Brent crude fell by $2.21 to $114.51, and West Texas Intermediate dropped by $2.23 to $101.04. The main factor behind the price drop was the reduced concern among traders about the possibility of military conflicts escalating in the region.
Impact of Attacks on Oil Facilities
On Wednesday, November 6, oil prices rose again. Brent crude increased by $2.02 to $115.90, and West Texas Intermediate rose by $2.01 to $101.91. The primary reason for this shift was a missile attack on Saudi Arabia's largest oil refinery, which heightened concerns about the potential escalation of conflicts and damage to regional energy infrastructure.
On Thursday, November 7, oil prices lost some of the previous day's gains, with Brent crude settling at $114.05. New diplomatic efforts helped alleviate market concerns, but increased production from Russian refineries and crude oil withdrawals from U.S. reserves added further pressure on prices.
Finally, on Friday, November 8, oil prices rose again, with Brent crude reaching $116.59. Growing concerns about the security of energy transit routes in the Middle East were identified as the main factor driving price increases.
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