New York. The price of Texas intermediate oil opened this Monday with a drop of 6.26%, to $67.29 a barrel, its worst start in two years, after Israel attacked Iranian territory on Saturday but did not hit energy facilities in the Persian nation.
Ten minutes after the opening of the session, WTI futures contracts for delivery in November lost $4.49 compared to the previous day’s close.
With eight days left until the US elections, which will also influence crude oil prices, black gold in the US is heading for its worst session since July 12, 2022, when prices fell 7.93% .
The Israeli State’s offensive against Iran had fewer consequences than expected, with limited damage and without affecting nuclear, oil or civil infrastructure.
Furthermore, no interruption was reported in the Iranian oil industry, which represents around 4% of global supply, which is why many operators have interpreted it as a de-escalation of the hypothetical scenario of open war between both regional powers, and this has made prices fall. Attention will now turn to whether Iran will counter the attack in the coming weeks.
“We do not seek war, but we will defend our country and the rights of our people. We will give a proportionate response to the assault“said Iranian President Masoud Pezeshkian on Sunday after a meeting with his government team.
This context of geopolitical uncertainty coincides with the fear of excess production driven by the United States that continues to harm global crude oil prices.
“OPEC+ members plan to increase production in December, which increases the threat of a surplus in the global oil market,” analyst Tom Essaye detailed today in his daily report ‘The Sevens Report’.
Texas crude oil had ended Friday up 3.7% for the week, after retreating on Wednesday and Thursday due to bearish data from the US Energy Information Administration, which showed further weakness in oil trends. gasoline demand during the summer.
Elsewhere, global benchmark Brent crude futures also fell 5.94% to $71.53 per barrel in early morning trading on the US East Coast.
Likewise, natural gas plummeted more than 8%, to $2.34 per thousand cubic feet, after the market is interpreting Israel’s limited attack against Iran as a reduction in the risks that the latter will end up blocking the Strait of Hormuz and, therefore, gas exports.
Gasoline contracts for delivery in November also fell considerably – 4.24%, to $1.99 a gallon.
