Diplomacy weighs on oil prices

U.S. President Donald Trump's statement that new military operations against Iran were highly unlikely eased concerns over oil supplies from the Middle East. Brent crude traded at $98.35 per barrel in morning trading, while West Texas Intermediate (WTI) crude stood at $91.30. Brent had ended the previous week with a loss of approximately 16%.

Nevertheless, attacks on commercial vessels near the Strait of Hormuz and the absence of a comprehensive agreement between the United States and Iran continue to create uncertainty in energy markets. According to JPMorgan, a supply surplus is beginning to emerge in the global oil market, with excess production estimated at 1.1 million barrels per day in September and 1.4 million barrels per day in October. Alongside diplomatic developments, the global demand outlook and production levels will be key factors determining the future direction of oil prices.