Oil Prices Plummet Over 6% Following Israel’s Limited Strike on Iran
Oil prices experienced a significant drop on Monday, October 28, as Israel’s restrained retaliation against Iran over the weekend disappointed market expectations.
The most actively traded Brent crude oil contracts for December ended the day down by 6.12%, settling at $71.00 per barrel (R$ 397,60) on the Intercontinental Exchange in London.
Similarly, December contracts for West Texas Intermediate (WTI) crude fell by 6.12%, closing at $67.38 per barrel (R$ 376,93) on the New York Mercantile Exchange.
This marked the largest intraday decline for WTI since 2022. The decline in oil prices can be attributed to easing tensions in the Middle East.
Over the weekend, Israel launched a retaliatory strike against Iran, involving dozens of jets. These jets executed three waves of attacks on missile factories and other sites near Tehran and in western Iran.
This incident represented the latest escalation between these regional rivals. Contrary to market forecasts, the conflict did not impact oil and nuclear facilities, thus avoiding any disruption to energy supplies.
This outcome surprised many traders who had anticipated a more severe impact. In light of these developments, Citi revised its three-month price target for Brent crude from $74 to $70 per barrel.
However, this change reflects a lower risk premium in the short term, as noted by analysts led by Max Layton.
It’s also important to remember that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, maintained their oil production policy last month.
They plan to begin increasing production starting in December. The group is scheduled to reconvene on December 1 to discuss further strategies.
Live Market IntelligenceCommodities — Live Market Board
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Commodities — Live Market Board
-0.03%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| GOLD | 4,461 | +1.78% | +33.20% | 4,383 | 4,503 | 4,421 | 139,824 |
| SILVER | 65.59 | +1.26% | +73.05% | 64.77 | 66.98 | 64.81 | 46,406 |
| BRENT | 88.88 | -0.03% | +34.42% | 88.91 | 90.07 | 88.12 | 29,713 |
| WTI | 83.11 | -0.11% | +31.57% | 83.20 | 84.35 | 82.40 | 166,848 |
| COPPER | 6.61 | +0.03% | +46.70% | 6.61 | 6.71 | 6.61 | 39,543 |
| LITHIUM | 75.20 | +1.47% | +62.95% | 74.11 | 75.80 | 75.08 | 89,275 |
| IRON ORE | 161.91 | — | +58.10% | 161.91 | 161.91 | 1 | |
| SOY | 1,184 | +3.20% | +17.05% | 1,148 | 1,199 | 1,168 | 163,179 |
| CORN | 480.50 | +10.02% | +29.34% | 436.75 | 480.75 | 459.50 | 341,248 |
| WHEAT | 655.00 | +3.93% | +29.70% | 630.25 | 657.75 | 631.50 | 128,793 |
| COFFEE | 317.25 | -5.51% | +0.67% | 335.75 | 321.20 | 313.55 | 21,747 |
| SUGAR | 16.43 | -1.79% | -3.01% | 16.73 | 17.11 | 16.22 | 171,992 |
| COCOA | 5,719 | +3.18% | -34.96% | 5,543 | 5,779 | 5,574 | 26,773 |
| ORANGE JUICE | 138.55 | -0.47% | -45.38% | 139.20 | 141.05 | 137.50 | 703 |
| COTTON | 85.03 | +2.33% | +26.78% | 83.09 | 82.90 | 81.96 | 16,546 |
| BEEF | 223.60 | -3.93% | -5.18% | 232.75 | 226.40 | 223.00 | 16,126 |
| CATTLE | 339.10 | -3.16% | -1.82% | 350.17 | 345.50 | 338.60 | 10,164 |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
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