OIL
WTI oil prices dropped as markets opened after the weekend, hitting their lowest level in over three weeks. This decline comes as tensions in the Middle East appear to ease. Concerns of an all-out war between Israel and Iran had loomed over the region for the past month, with markets bracing for Israel’s potential retaliation following Iran’s missile strike on October 1. However, the response was measured, and the worst fears have subsided for now. With reduced geopolitical risks to supply, traders have shifted their focus back to market fundamentals, which currently include a demand slowdown—especially from China, the world’s top crude importer—and an upcoming OPEC+ production increase set for December. In this context, the risk to oil prices appears skewed to the downside.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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