The geopolitical risk premium that shapes oil prices fell in anticipation of an Israeli strike on Iran.
Oil prices have dropped significantly in value due to the decline in risks of supplying “black gold” to world markets. This was confirmed by the trading results on Monday, October 28.
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Thus, Brent oil futures for December fell in price on the London ICE Futures exchange by $4.47 (5.91%) to $71.16 per barrel. On Friday, Brent rose $1.67 (2.3%) to $76.05 a barrel.
In turn, December futures for WTI oil fell in price in electronic trading on the New York Mercantile Exchange (NYMEX) by $4.46 (6.21%) to $67.32 per barrel. In the previous session, the contract rose $1.59 (2.3%) to $71.78 per barrel.
Western agencies wrote that oil prices fell due to the easing of geopolitical tensions in the Middle East. Israel’s retaliatory missile attack on Iran over the weekend missed Tehran’s oil and nuclear facilities. So the level of oil supply in the markets does not decrease.
According to analysts, the geopolitical risk premium that shaped oil prices in anticipation of an Israeli strike has declined.
Meanwhile, Iran’s president promised a “response” to Israel, but it would be “balanced and thoughtful.”
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.