Brent oil price benchmark set for biggest weekly drop since 2020
LONDON: Oil prices were set for a sharp weekly fall after the election losses of US President Donald Trump's Republican Party raised hopes of a de-escalation in the US-Israeli war on Iran and a stock market sell-off, though attacks on vessels in the Middle East continue to provide a floor to crude.
Oil prices are poised for their largest weekly decline since 2020 due to the Republican Party's election losses, which have heightened hopes for a de-escalation in the US-Israeli conflict over Iran. The market downturn is compounded by a technology stock sell-off and a potential supply excess due to Iran's possible oil exports. Despite concerns over supply shortages, the quality of crude differs as refiners work to utilize what they can extract from the region.
The market remains on the lookout for a formal Iran deal or any adverse reaction from either party that might tighten fundamentals again. Oil prices plummeted by eight percent on Wednesday alone following the Democrats' victory in the US midterm elections, reaching two-month lows. However, prices recovered after a surge in tanker attacks in the Gulf and the Strait of Hormuz, reigniting worries about potential supply disruptions.
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