The key facts
- On the morning of November 6, Brent rose to $100.75 per barrel, but by 08:07 Moscow time it had slipped back to $99.66
- On November 4, oil lost more than two dollars in 11 minutes, falling below $95 — for the first time since the beginning of September
- Over the week, both benchmark grades are down roughly 12% amid expectations of an easing of the US–Iran conflict
A sharp reversal after two days of decline
Global oil prices reversed sharply upward after a recent crash. On the morning of November 6, the price of Brent once again broke through the psychologically important mark of $100 per barrel, gaining more than 2% within a few hours, reports Life.ru citing data from the London ICE exchange. By 06:30 Moscow time, January futures for the North Sea blend had risen 1.99%, reaching $100.25, and ten minutes later the growth accelerated to 2.5% — up to $100.75 per barrel. American WTI was rising along with Brent: December contracts gained 4.65% at the peak of the rally, reaching $92.22. Brent failed to hold above the round figure — by 08:07 Moscow time it had slipped back to $99.66.
What lies behind the swings
The publication attributes the new wave of volatility to investors' concerns about energy supplies from the Middle East: according to Reuters, which Life.ru cites, attacks on tankers in the Persian Gulf and tensions around the Strait of Hormuz have once again forced the market to factor in the risks of oil export disruptions. This sea route remains one of the key ones for supplying crude from the region. At the same time, the morning rally does not offset the week's losses: after the US midterm elections, quotes collapsed on expectations of a possible easing of the US–Iran conflict. On November 4 alone, Brent lost more than 8% in a day, and over the week both benchmark grades were heading for a decline of roughly 12%. Investors now have to assess which factor will prove stronger — hopes for a diplomatic settlement or the continuing threats to oil infrastructure and maritime shipping.
The scale of the crash in numbers
The publication describes the dynamics of November 4 in detail: that evening, Brent fell below $95 per barrel for the first time since the beginning of September. At 19:35 Moscow time, January contracts were priced at $96.88, four minutes later — $95.80, and by 19:46 — $94.74: in 11 minutes the barrel lost more than two dollars, with the intraday decline exceeding 8.5%. WTI simultaneously fell to $88.81. For comparison: as recently as late October, Brent traded above $113, and on November 2 it dropped to $110.11. Thus, even the November 6 spike to $100.75 leaves the price noticeably below late-October levels, showing how unstable the market remains.
