Brent oil price fell more than 16 percent over the week, its largest weekly drop since 2020, driven by growing market expectations that the conflict between the United States and Iran will de-escalate.
On Saturday morning Eastern Time, the West Texas Intermediate (WTI) slipped below 90 U.S. dollars on the New York Mercantile Exchange, ending the week down 12.76 percent. The price of Brent crude oil futures also dipped below 97 U.S. dollars a barrel, posting a weekly loss of 16.42 percent.
Analysts say the drop in oil prices is largely attributable to two factors.
Following the U.S. midterm elections, investors have reassessed the likelihood of an escalating military conflict between the United States and Iran and the prospects for a diplomatic breakthrough, tempering expectations of further escalation.
Meanwhile, crude oil supplies from the Middle East have become more abundant, as the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, will keep their oil output levels unchanged for the third consecutive month in December.
Brent oil price experiences largest weekly drop since 2020
