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Overview
- WTI for November settled at $58.90, down 4.24%, while December Brent closed at $62.73, down 3.82%, marking the lowest levels in four to five months.
- Losses accelerated after President Donald Trump threatened a large increase in tariffs on Chinese goods, worsening the outlook for oil demand.
- Prices were already under pressure after Israel and Hamas signed the first phase of a Gaza ceasefire and hostage-release deal, removing part of the geopolitical risk premium.
- Analysts noted Israel is not a significant oil producer, and traders are watching whether Houthi attacks on Red Sea shipping subside under the truce.
- Expectations that near-term production will exceed consumption added to the decline, with weekly losses of 3.25% for WTI and 2.78% for Brent.