Why Brent is falling in price – Vedomosti
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The price of Brent oil futures for January delivery from mid-October to November 8 on the ICE exchange decreased by 13% and amounted to $81/barrel. The indicator has become the lowest since the end of July this year. On November 7, a barrel of Brent immediately lost 4.2% compared to the close of the previous day’s session, falling to $81.6/barrel.
According to ICE, December futures for American WTI oil fell even more – by 13.3% from mid-October and traded at $76.6 per barrel on November 8.
But back in mid-October, experts expected that oil prices could go up due to the Palestinian-Israeli conflict that began on October 7. “A sharp escalation of geopolitical risks in the Middle East, a region that accounts for more than a third of global seaborne oil trade, is keeping markets on edge,” the International Energy Agency (IEA) said in a monthly report released on October 12. According to the agency, due to the escalation of the conflict between Israel and the Gaza Strip, traders have set a risk premium of $3-4/bbl. to the price of oil. The IEA believed that markets would feel “on pins and needles” until the crisis was over.
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