Oil closes higher and rises 15% in the month with uncertainty about negotiations between the US and Iran
Brent closed at US$113.43 per barrel and WTI at US$104.12, with talks between the US and Iran taking center stage.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM MONEY TIMES · 2 MIN
Oil ended Friday, October 30, on a high and consolidated another month of gains. According to Money Times, Brent for January rose 2.37%, to US$ 113.43 per barrel on ICE, in London, while WTI for December rose 2.08%, to US$ 104.12 per barrel on Nymex. It was the fourth consecutive monthly gain for the commodity.
In the accumulated result for the week, Brent registered an increase of 1.55% and WTI, of 0.82%. In October, the appreciation was more significant: Brent rose 15.70% and WTI, 15.15%, according to the same survey.
The main reason cited by the news is the uncertainty about the success of the mediators in the negotiations between the United States and Iran. While the talks do not progress, the market remains attentive to any sign of escalation in the Middle East.
According to Money Times, tensions between Saudi Arabia and the Houthis raise concerns about the energy infrastructure of the region and the kingdom itself. Damage to production or transport facilities can directly affect supply, which helps explain price support.
At stake is diplomacy's ability to contain escalation. If negotiations progress, the risk premium embedded in quotes may decrease. If they fail, the pressure on oil tends to remain.
What changes for the investor
For those who follow the stock market, interest rates and the dollar, rising oil tends to produce chain effects. Companies linked to energy production tend to benefit from higher prices, while sectors dependent on fuel and transport feel pressure on costs. In inflation, the rise in energy can fuel expectations and influence the path of interest rates, which has repercussions on the pricing of shares, including those of companies listed on the Nasdaq, and on the exchange rate. The outcome of negotiations between the US and Iran will be a decisive factor for price behavior in the coming weeks. This analysis does not constitute a recommendation to buy or sell assets.
Automatically translated from Portuguese.
