Brent Nears $118, Extends Gains to Fourth Month on Fears of Wider Iran Conflict
Summary
- Brent futures extended their four-month winning streak as prices approached $118 a barrel.
- Concerns over supply disruptions, low inventories, and tight refined-fuel supplies grew after President Trump warned that strikes on Iran could resume.
- Despite the U.S. administration's supply contracts for about 41 million barrels from the Strategic Petroleum Reserve, the market remains focused on the risk of wider conflict after the midterm elections.
Forecast Trend Report by Period
Oil prices rose on concerns that the U.S. could resume strikes on Iran, lifting Brent crude to near $118 a barrel, its highest level in six months.
Bloomberg reported that the December Brent contract, which expired on October 30, settled near $118 a barrel. It rose for a fourth straight month. West Texas Intermediate also closed above $104 a barrel.
Supply concerns intensified after President Donald Trump repeatedly warned that the U.S. could resume strikes on Iran after next week's midterm elections. Oil shipments through the Strait of Hormuz are recovering, but repeated tanker attacks, low inventories and tight refined-product supplies also pushed prices higher.
Crude pared some of its gains after regular trading ended. WTI and January Brent fell after Trump said, "Peace talks are under way. We have time."
The U.S. administration signed supply contracts for about 41 million barrels from the Strategic Petroleum Reserve on October 30. Even so, the market remains focused on the possibility of an escalation after the midterm elections. ANZ strategists said the prospect of renewed fighting after the vote is adding to uncertainty in an already fragile physical crude market.
Doohyun Hwang
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