Perspective on on crude oil by Ashish Rajodiya, Head - Commodities, PL Capital
Below the Perspective on Crude Oil by Ashish Rajodiya, Head - Commodities, PL Capital
Crude oil fell about 3.7% on MCX on Monday, with the November contract at ?9,572 per barrel, down ?365, as hopes of a diplomatic exit from the Iran war pulled back part of a month of heavy gains. Brent slipped to around $110 and WTI to about $101, each down roughly 3%. Brent had touched a six-month high at the end of October and gained about 15% over the month.
Qatar is reported to be working on a proposal to reopen the Strait of Hormuz, and Iran's foreign minister Araghchi has said the talks are making progress. That has taken some of the war premium out of prices. Supply worries remain, though: tanker attacks continue and OPEC+ held its December output targets unchanged.
Tuesday's US midterm elections are the next trigger. A firmer US line on Iran could restart the climb, while a concrete deal to reopen Hormuz would likely extend the fall.
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