Brent heads for steepest weekly fall since April 2020
Oil rebounded on Friday, but front-month Brent futures remained down about 16% for the week as investors assessed prospects for ending the Middle East war.
Brent crude was heading towards its sharpest weekly decline since April 2020 on Nov 6, despite a recovery in Friday trading, as investors considered whether diplomatic efforts could end the Middle East conflict.
At 9.19am in Singapore, January Brent futures had risen 1% to US$99.27 a barrel. West Texas Intermediate’s December contract gained 0.9% to US$91.29 a barrel. The rebound followed a steep sell-off after Democrats swept the US midterm elections.
Brent’s front-month futures were still about 16% lower for the week. The benchmark switched from the December contract at the week’s start, while the January contract alone lost almost 13% over that period.
Differences over a settlement remained. Tehran is seeking relief from sanctions, the release of frozen assets and an end to the US blockade of its ports before fully reopening the Strait of Hormuz. The New York Times reported that Iran was examining nuclear programme proposals put forward by mediators.
Raymond James & Associates Inc analyst Pavel Molchanov said a lasting diplomatic agreement reopening Hormuz could send oil prices lower, but urged scepticism. Separately, Axios reported, citing two unnamed US officials, that President Donald Trump was weighing further strikes, continued economic pressure or an agreement involving significant concessions to Iran.
