Last week, oil prices endured another volatile week, propelled by geopolitical unrest and shifting fundamentals. Brent crude settled at $77.01, up from $75.18, and WTI rose to $74.93 from $73.18. Early-week surges were fuelled by heightened Israel-Iran tensions and threats to the Strait of Hormuz, which handles about 20% of global oil flow. Prices dipped to $69–70 by Tuesday as ceasefire hopes grew, with missile strikes sparing energy infrastructure, but rebounded to the mid-$70s by week’s end. The market remains torn between high global inventories—bolstered by record May builds and steady U.S. output—and a persistent geopolitical risk premium. Some analysts warn that a Strait disruption could propel Brent beyond $100, potentially hitting $120, severely tightening supply.

The WTI facing resistance at $77 and support between $57–44. Speculative trading amplifies volatility, as hedge funds bet on price swings amid shaky Middle East de-escalation prospects. A sustained ceasefire, with Iran avoiding oil routes, could stabilize prices in the $70–77 range, but escalations could spark sharp spikes. OPEC+ may adjust production cuts in December, while China’s sluggish economy caps demand growth, though winter demand may offer support. U.S. policy shifts, Russian supply uncertainties, and long-term renewable energy trends add complexity, leaving traders braced for volatility as geopolitical “what-ifs” dominate pricing.

Oil is $67 as of the time of publishing this article. We are projecting the price of oil to dip to $59 in the coming days as all gains of last week could be lost as Israel and Iran hopefully embrace the ceasefire.
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