Oil plummeted as Israeli attacks on Iran evaded the OPEC member’s oil facilities this weekend. Brent crude fell 5% to trade at $72 a barrel, while West Texas Intermediate fell below $68. More than 100 Israeli warplanes struck military targets across Iran on Saturday, vowing to retaliate for a barrage of missiles launched early this month. The attack was more subdued than many expected, and Iranian state media said the country’s oil industry operations were functioning normally.
Crude oil prices were battered by geopolitical risks in the Middle East and subdued demand growth in China, with industrial earnings data at the weekend underscoring the biggest oil importer’s weak outlook despite recent government stimulus. Meanwhile, OPEC’s plans to ease production cuts despite increasing supply from outside the cartel have fueled fears there will be a surplus next year.
- Brent settlement for December fell 4.9% to $72.34 per barrel as of 6:10 a.m. in Singapore.
- WTI for December deliveries fell 5% to $68.16 per barrel.