Oil set for sharp weekly drop but Middle East supply concerns provide floor
BEIJING: Oil prices are set for a sharp weekly drop on expectations of a de-escalation of the Iran war after US President Donald Trump’s party suffered election losses, but Middle East supply concerns from the conflict continue to provide a floor for the market. Brent crude futures for January rose on Friday by $1.57, or 1.6%, to $99.86 a barrel as of 0222 GMT. US West Texas Intermediate futures…
Oil prices are expected to experience a sharp weekly decline due to the recent US Congressional elections, which saw the Democrats gain control of the Senate and House of Representatives, marking a significant shift from President Trump's Republican majority. While this shift was initially viewed as a potential catalyst for de-escalation in the Iran conflict, supply concerns from the ongoing Middle East tensions continue to support the market.
Brent crude futures for January rose by $1.57, or 1.6%, to $99.86 a barrel, while US West Texas Intermediate futures climbed by $1.10, or 1.22%, to $91.62 a barrel. However, both contracts are on track to decline by 12% this week following the expiration of the December contracts. The volatile market sentiment has been influenced by a series of tanker attacks in the Gulf and the Strait of Hormuz, reigniting concerns over potential supply disruptions from the region.
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