Oil prices dropped by 6% on Monday following Israel’s recent retaliatory airstrikes on Iran, which targeted military facilities rather than oil or nuclear sites, alleviating concerns about disruptions to energy supplies, Reuters reports.
Brent futures dropped 6.09% to settle at $71.42 per barrel and US West Texas Intermediate (WTI) crude fell 6.13% to $67.38. The declines marked the lowest prices since early October, driven by market reactions to geopolitical events. Last week, oil prices had risen 4% amid uncertainty surrounding the US election and Israel’s potential responses to an Iranian missile attack. Citi revised its Brent price target down to $70 a barrel from $74, citing reduced risk premiums.
OPEC+ is expected to maintain its current oil output policy, with a planned increase starting in December. However, analysts predict that WTI prices could decline further, potentially averaging $65 a barrel in 2025, unless OPEC+ limits output increases.
