Perspective on Crude oil from Ashish Rajodiya, Head of Commodities, PL Capital
Below the Perspective on Crude oil from Ashish Rajodiya, Head of Commodities, PL Capital
Crude oil extended its slide on Wednesday, with MCX November crude at ?8,326 per barrel, down ?778 or 8.55%, its third straight fall. Brent dropped below $95, a two-month low, down from about $118 earlier in October, as hopes grew of a US-Iran deal.
Reports that the US has approved a draft understanding, passed to Iran through Qatari mediators, have pulled the war premium out of prices. Renewed Gulf exports have also left near-term supply looking ample.
The fall is not yet backed by a deal. Iran says the Strait of Hormuz will reopen only if fighting stops across the region, and an Iranian official has called the US response unconvincing. A signed agreement that reopens Hormuz would likely extend the decline, while stalled talks or fresh strikes could bring a sharp rebound.
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