HOUSTON: Oil prices plummeted by nearly 5% on Monday after Israel’s recent military action against Iran over the weekend spared oil and nuclear sites, maintaining energy supply stability.
Thank you for reading this post, don't forget to subscribe!By 11:37 a.m. CDT (1637 GMT), Brent crude futures dropped $4.20, or 5.52%, to $71.83 a barrel, and U.S. West Texas Intermediate (WTI) crude slid $4.08, or 5.68%, to $67.70—a low unseen since early October.
Phil Flynn, senior analyst at Price Futures Group, remarked, “This is a classic example of a headline-driven market. Geopolitical risks remain significant.”
Despite last week’s 4% rally, driven by uncertainty over U.S. election outcomes and possible escalations in the Middle East, Citi analysts have revised their Brent forecast, now expecting prices to average $70 over the next three months, down from $74.
OPEC+ recently upheld its current output policy, with plans to begin increasing production in December, ahead of its December 1 meeting. Tudor, Pickering Holt analyst Matt Portillo suggests WTI prices could trend significantly lower in the upcoming year.
