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.
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.
