Petrol Prices Continue to Decrease as Tensions Ease

Measured Optimism in Oil Markets

Oil prices continue to hold their largest weekly decline amid measured optimism regarding the potential easing of tensions in the Middle East and expectations related to supply outlook.

Current Status of Brent and WTI Prices

Brent crude closed down 1.6% on Thursday, trading at around $65 per barrel. U.S. crude oil (WTI) has also fallen below $62. This situation has been supported by Israel's approval of a framework for the release of Hamas prisoners in exchange for hostages.

OPEC+'s Production Decisions and Market Effects

On Sunday, it was reported that the OPEC+ group decided to increase production quotas in order to regain market share. However, the announced daily 137,000-barrel increase for November fell short of expectations ahead of the meeting. This led to a brief "relief rally" in prices at the beginning of the week.

Supply Surplus and Market Outlook

The oil supply surplus is supported by additional supply from OPEC and its allies, along with oil from producers in the Americas, including the U.S.. Although the overall market sentiment leans towards a "bear market," according to views gathered from Citigroup clients, there are varying degrees of pessimism regarding the future of oil.