The price of Texas intermediate oil started the week with a drop of 6.26%, reaching 67.29 dollars per barrel, its worst performance in two years. The decline occurred after Israel launched an attack on Iranian territory on Saturday, without impacting Iran's energy facilities.
Ten minutes after the opening, WTI futures contracts for November showed a loss of 4.49 dollars compared to the previous close. With eight days until the elections in the U.S., which will also influence crude prices, American oil is heading toward its worst session since July 2022, when it suffered a drop of 7.93%.
Despite the Israeli attack on Iran, which had lesser consequences than expected and did not affect critical, oil, or civilian infrastructure, there were no interruptions in the Iranian oil industry. This scenario has been interpreted by many traders as a sign of calm in a possible conflict between the two powers, which has led to a decrease in prices.
Analyst Tom Essaye noted that OPEC+ members plan to increase production in December, raising the risk of an oversupply in the global oil market. These moves come after a week in which Texas crude recorded a weekly increase of 3.7%, despite weakness in gasoline demand trends during the summer in the U.S.
Regarding other markets, Brent crude futures also fell by 5.94%, reaching 71.53 dollars per barrel. Natural gas plummeted over 8%, reaching 2.34 dollars per thousand cubic feet, due to the perception of reduced risk following Israel's limited attack on Iran.
Meanwhile, gasoline contracts for November also suffered a marked decline of 4.24%, settling at 1.99 dollars per gallon. Amid this geopolitical uncertainty and the fear of oversupply led by the U.S., Iranian President Masoud Pezeshkian stated that his country will respond proportionately to the aggression, highlighting a defensive posture against possible conflicts.
