HOUSTON: Oil prices tumbled by around $4 a barrel on Monday after Israel’s retaliatory strike against Iran’s military on Saturday bypassed oil and nuclear facilities, not disrupting energy supplies.

Brent futures were down $4.20, or 5.52 per cent, at $71.83 a barrel at 11:37am CDT (1637 GMT), while WTI US crude futures lost $4.08, or 5.68pc, to $67.70.

Both Brent and US West Texas Intermediate crude futures hit their lowest since Oct 1 at the open.

“Obviously, this is a perfect example of a headline-driven market,” said Phil Flynn, senior analyst at Price Futures Group. “We still have a lot of geopolitical risk.”

The benchmarks gained 4pc last week in volatile trade as markets reflected uncertainty over the looming US election and the extent of Israel’s expected response to the Iranian missile attack of Oct 1.

Citi lowered its Brent price target for the next three months to $70 a barrel from $74, factoring in a lower risk premium in the near term, analysts led by Max Layton said in a note.

The Organisation of the Petroleum Exporting Countries and its allies, a group known as Opec+, kept oil output policy unchanged last month, including a plan to start raising output from December. The group will meet on Dec 1 ahead of a full meeting of Opec+.

Tudor, Pickering Holt analyst Matt Portillo said WTI could trade much lower in the coming year.

Published in Dawn, October 29th, 2024

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Economic plan
Updated 02 Jan, 2025

Economic plan

Absence of policy reforms allows the bureaucracy a lot of space to wriggle out of responsibility.
On life support
02 Jan, 2025

On life support

PAKISTAN stands at a precarious crossroads as we embark on a new year. Pildat’s Quality of Democracy report has...
Harsh sentence
02 Jan, 2025

Harsh sentence

USING lawfare to swiftly get rid of political opponents makes a mockery of the legal system, especially when ...
Looking ahead
Updated 01 Jan, 2025

Looking ahead

The dawn of 2025 brings with it hope of a more constructive path to much-needed stability.
On the front lines
Updated 01 Jan, 2025

On the front lines

THE human cost of terrorism in 2024 was staggering. The ISPR reports 383 officers and soldiers embraced martyrdom...
Avoiding reform
01 Jan, 2025

Avoiding reform

PAKISTAN’S economic growth significantly slowed down to a modest 0.92pc during the first quarter of the present...