Oil prices see largest weekly drop since 2020

Global oil prices have experienced a significant decline, with Brent crude falling over 13 percent during the week to approximately 97.7 dollars per barrel. West Texas Intermediate (WTI) also saw a substantial drop, reaching around 90.3 dollars per barrel. This represents the most significant weekly percentage decline since the start of the COVID-19 pandemic in 2020.

The price drop is driven by hopes for a diplomatic breakthrough in the Middle East that could end the conflict with Iran, reducing fears of supply disruptions. Additionally, reports indicate an increase in oil supplies from OPEC nations. Specifically, OPEC production rose in October to approximately 22.8 million barrels per day, supported by increased output from Saudi Arabia, which reached 9.2 million barrels per day.

While military conflict in the Persian Gulf previously disrupted shipping through the Strait of Hormuz, Saudi Arabia has been able to gradually restore its exports to levels approaching those seen before the conflict began.