Oil prices decline in morning trade

Oil prices demonstrated a decline during the morning trading session, but a significant increase is observed over the current week due to the escalation of the geopolitical situation in the Middle East, Report informs via Interfax.

November futures contracts for the Brent benchmark on the London-based ICE Futures exchange stood at $106.52 per barrel as of 9:14 a.m. Baku time, which is $1.11 (1.03%) below the closing level of the previous session.

The day before, their price rose by $6.42 (6.34%), reaching $107.63 per barrel.

October futures contracts for WTI crude in electronic trading on the New York Mercantile Exchange (NYMEX) had dropped by $0.84 (0.82%) to $101.64 per barrel by this time. Following the previous trading session, their quotes added $6.43 (6.69%), settling at $102.48 per barrel.

According to analysts, oil prices are being supported by fears that the resumption of hostilities in the Middle East will exacerbate fuel supply disruptions from the region. In particular, experts fear that normal shipping through the Strait of Hormuz will not be restored until next year.

Significant volumes of oil pass through the Strait of Hormuz, but they are still substantially below pre-war levels, ING analysts believe.