Remember COP31?
USO•The UN climate summit opened in Turkey with less attention than recent COP gatherings, while Brent crude fell to around $93 a barrel as investors discounted the risk of another major US-Iran flare-up. Gulf producers are cutting prices as significant volumes of crude continue through the Strait of Hormuz.
1. Oil supply shifts
Brent crude fell sharply to around $93 a barrel on Monday, extending the previous week’s sell-off. Investors were increasingly discounting the risk of another major US-Iran flare-up after Republicans’ bruising midterm defeat, in which opposition to the war played a major role.
2. Producers compete for buyers
Despite reported attacks on shipping in or near the Strait of Hormuz, significant volumes of crude are still leaving the Middle East through the waterway. Gulf producers are cutting prices to compete for buyers, potentially signaling a shift from scarcity fears toward a crowded, fiercely competitive oil market.
3. Climate summit opens
The annual UN climate summit kicked off in Turkey with less fanfare and global attention than COP gatherings have received in recent years. Heatwaves, floods and other extreme weather events this year underscored the urgency of tackling man-made global warming, while governments also faced soaring inflation fuelled by wars in the Middle East.
