Oil prices plunged 6% as Middle East concerns eased, US data disappointed
On October 26, Israel launched a retaliatory strike on an Iranian military base, alleviating concerns over potential attacks on oil infrastructure that could have disrupted global oil supplies.
Oil prices plunged by over 6% on Monday, marking the largest decline in more than two years. This drop was driven by easing concerns over Middle Eastern hostilities and the release of lackluster oil market data from the United States.
Brent crude down by $4.63 or 6.09% to close at $71.42/barrel.
WTI fell by $4.40 or 6.13% to settle at $67.38/barrel.
On October 26, Israel launched a retaliatory strike on an Iranian military base, alleviating concerns over potential attacks on oil infrastructure that could have disrupted global oil supplies. With the risk premium fading, supply-demand fundamentals are once again expected to drive oil prices in the near term.
Intensifying the bearish outlook, looming uncertainty over the upcoming US presidential election and a slew of economic data from US this week, particularly in growth and employment rates could further cloud the trajectory of US monetary policy.
Written by: Muhammad Hafiz