Oil prices dropped by about two dollars per barrel during Monday's trading, amid hopes for a reduction in Middle East escalation, while concerns about supply security, amid ongoing attacks on Saudi Arabia and tensions in regional waterways, limited price losses.
Decline in Futures Contracts
Reuters reported that Brent crude futures fell by $2.03, or 1.7 percent, to $114.70 per barrel, while West Texas Intermediate crude futures fell by $2.60, or 2.5 percent, to $100.71. This decline followed a rise of about three dollars at the close of last Friday's trading, achieving weekly gains of six percent for Brent and 2.3 percent for West Texas Intermediate.
Escalation of Attacks in the Strait of Hormuz
As an indicator of escalating risks facing maritime trade, data collected by the Washington Institute for Near East Policy showed that October witnessed an escalation in attacks on commercial shipping in the Strait of Hormuz and nearby waterways, making it the worst in terms of the number of these attacks.
Aramco Plans and IEA Warnings
In the context of enhancing supply security, the Saudi and Singaporean oil ministers announced earlier today that Saudi Aramco will begin storing crude oil in Singapore during the second half of 2027, aiming to enhance the resilience of its supply chain in the region. For his part, International Energy Agency Executive Director Fatih Birol warned of the continued impact of the war on energy markets, noting during a sector event in Singapore today that he does not expect energy markets to return to pre-US-Iran war conditions in 2027.
Price movements reflect the ongoing balance between hopes for a reduction in geopolitical tensions on one hand, and fears of disruption to oil supplies and maritime shipping on the other, as investors anticipate political and security developments and their impact on global markets.
Source: Syrian Arab News Agency (SANA)
Comments (0)