Brent falls to 90.65 dollars, its lowest since late August
By the AFREEQUE newsroom, based on Maghreb Emergent
Brent crude slipped back below 91 dollars on Tuesday, to around 90.65 dollars, its lowest since late August, after a fall of about 20% in ten days. The market is shedding part of the risk premium linked to the war with Iran, although the situation on the ground has not been resolved, according to Maghreb Emergent.
Brent crude fell on Tuesday morning to around 90.65 dollars, its lowest since the end of August, after a 5.85% drop on Monday to 92.57 dollars, Maghreb Emergent reports. In ten days, the benchmark contract has lost about 20% of its value, after closing at 113.43 dollars on 30 October.
Brent had risen above 100 dollars on 9 March, for the first time since 2022, following the Israeli-American strikes on Iran in February. Prices track the situation in the Strait of Hormuz, through which about a fifth of the world’s oil passes. The turnaround began on 2 November, when Washington and Tehran opted for dialogue mediated by Qatar. On Monday, Donald Trump described a resumption of hostilities as “very unlikely”, after receiving the Qatari prime minister.
Fundamentals are supporting this move: JPMorgan estimates the global supply surplus at about 1.4 million barrels a day in October. The seven OPEC+ countries, including Algeria, maintained their production targets for December on 1 November, but Gulf producers are pumping below these quotas because they cannot export normally. Tehran has denied that talks are taking place, and diesel stocks remain tight.
This decline follows Monday’s fall, when Brent had fallen below 97 dollars despite attacks in the strait.
