Brent crude oil prices recently reached $91.61 per barrel and West Texas Intermediate at $85.81 per barrel. This price decrease is attributed to statements by former U.S. President Donald Trump regarding no plans to attack Iran "at this time."
Analysis of the Oil Market Situation
Oil prices faced a 7% decline on Monday. Reports indicate that the United States is prepared to allow Iran to enrich uranium to nearly 4%, and reports suggest that Iran will respond positively to this proposal. However, these reports have not yet been confirmed by official sources.
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Attacks on Saudi Energy Infrastructure
Meanwhile, the Houthi group continues to target Saudi energy infrastructure. The latest attack was on the East-West pipeline, which, according to a Saudi Ministry of Energy official, caused a limited fire that was quickly extinguished. Additionally, attacks on tankers in the Strait of Hormuz continued this week, but oil traders ignored these attacks and focused on more positive news.
KCM Trade's senior market analyst, Tim Waterer, stated: "While attacks on transportation around the Strait of Hormuz continue, these attacks have not escalated to a level that would increase risk in the market."
Reports indicate that Brent oil prices have decreased by 22% from their recent high of $118 per barrel recorded at the end of October. In other news, a Reuters survey shows that OPEC production increased by 1.38 million barrels per day in October, reaching 22.87 million barrels per day. However, this figure is still below the average of 25.48 million barrels per day in February.
OPEC had previously promised to increase production this year, but the war with Iran has made this promise impossible. Members of the group produced nearly 25 million barrels per day in August, while their combined target was 31.01 million barrels per day.
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