Oil prices plunge sharply

Brent crude declined by 1.58% to $91.29 per barrel, while U.S. West Texas Intermediate (WTI) crude fell by 1.43% to $85.29 per barrel. Expectations that tensions between the United States and Iran would not escalate further, along with ongoing diplomatic contacts between Russia and Ukraine, reduced the geopolitical risk premium in oil prices.

The decline in oil markets was also driven by increased production from OPEC+ countries and rising U.S. crude oil inventories. According to preliminary data from the American Petroleum Institute (API), U.S. crude oil inventories increased by approximately 9 million barrels last week, reinforcing concerns about excess supply. Higher OPEC+ production in October, led by Saudi Arabia, also weighed on prices. Investors are closely monitoring the official U.S. oil inventory data scheduled for release today, as well as diplomatic developments in the Middle East.