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Oil prices fell more than $7 a barrel as Trump signaled reduced risk of Iran attacks, with Brent crude dropping 5.85% to $92.57 and WTI falling 4.38% to $86.85.
Global oil markets experienced their steepest weekly decline since the pandemic began after U.S. President Donald Trump suggested a reduced likelihood of renewed attacks on Iran, sending Brent crude futures down $5.75 and WTI futures lower by $3.98 in post-settlement trading. The drop marked a 16% weekly plunge for Brent, its worst performance since early 2020, as analysts cited unresolved regional security risks and shipping disruptions in the Strait of Hormuz.
OPEC members like Saudi Arabia and Iraq face revenue pressure from falling prices, while refiners and shippers near the strategic waterway grapple with ongoing threats. The global oil surplus reached 1.4 million barrels per day in October, exacerbating concerns about oversupply amid weak demand growth. U.S. Strategic Petroleum Reserve stocks hit a 40-year low of 279.5 million barrels, adding to market volatility.
Analysts warn that OPEC's recent production increase of 1.38 million barrels per day could further pressure prices if geopolitical tensions persist. The discount between physical oil and futures contracts highlights structural imbalances in the market, with traders closely watching for signs of sustained peace in the region.
Trump will meet Qatar’s PM to discuss regional diplomacy while Russia-Ukraine talks proceed under U.S. mediation. OPEC may adjust production levels based on evolving market conditions.
The sharp price drop underscores lingering uncertainty over Iran tensions, with markets awaiting diplomatic progress to stabilize energy prices.
Topics: Global Energy Markets, U.S.-Iran Relations, OPEC Production, Crude Oil Prices, Straits Of Hormuz, Traffic Disruptions, Economic Impact
#OilPrices #USStrategy #MiddleEastConflict #EnergyMarkets #Geopolitics #OPECDecisions
Source: LiveMint
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