Price movements
Crude futures contracts registered Brent It decreased by $4.63, or 6.09 percent, to settle at $71.42 per barrel.
US crude futures also fell by $4.40, or 6.13 percent, to settle at $67.38 per barrel.
The two benchmarks rose four percent last week in volatile trading, with markets affected by uncertainty about the size of the response Israel On the Iranian missile attack on October 1 and the US elections next month.
Dozens of Israeli warplanes carried out three waves of strikes before dawn on Saturday, targeting missile factories and other sites near Tehran and in the west. Iran.
Analysts reported a decline in the geopolitical risk premium that increased oil prices in anticipation of the Israeli attack.
John Evans of the oil brokerage firm BVM said that there is no doubt that the Israeli response was strongly influenced by the administration of US President Joe Biden before the US elections.
But Vivek Dhar, an analyst at the Commonwealth Bank of Australia, does not expect an immediate easing of the conflict in the Middle East.
He said in a memo: “Although Israel has chosen to respond to Iran in a limited manner, we doubt that Israel and Iran’s proxies are on the path to reaching a ceasefire agreement.”
Citigroup has lowered its Brent price target for the next three months to $70 per barrel from $74, taking into account a lower risk premium in the near term, analysts at Citigroup, led by Max Layton, said in a note.
The Organization of the Petroleum Exporting Countries and its allies, the group known as OPEC+, in October kept its oil production policy unchanged, including a plan to start increasing production starting in December.
The group’s joint ministerial committee will meet on December 1 ahead of a meeting OPEC+ In its entirety.
