Oil futurees fell sharply for the first time since the beginning of October on Wednesday, October 28. Brent slid 2.5% to $83.25/bbl, and WTI declined 2.9% to $ 81.56/bbl.
Oil prices hold considerable downside potential in the short term on the back of news from Iran, and this scenario materialized. According to Iranian media reports, negotiations on the Iranian nuclear program are scheduled to resume at the end of November. Notably, Iran seeks guarantees that the US will never reimpose sanctions if it returns to compliance with the 2015 nuclear deal, while the Biden administration says it cannot guarantee what another president might do. For the time being, however, the United States is keenly interested in seeing oil prices go down.
Oil prices extended losses this morning, with Brent off 1.06% at $83.71/bbl, while WTI is down 0.92% at $81.90, still holding with the range of $81-82/bbl, narrowing the Brent-WTI spread. Our new Brent price forecast for today is $81-84/bbl.