Oil Prices Retreat After Touching Multimonth Highs

Brent crude for December delivery settled at $108.79 a barrel, while West Texas Intermediate dropped to $97.82. The session was defined by extreme swings; the November WTI contract, which expired Tuesday, briefly surged past $110 before ending the day down 1.8% at $101.79. Analysts point to the expiration of the November contract as a catalyst for the day's illiquid and erratic price action.

Geopolitical anxiety remains the primary engine of this volatility. Despite reports of a ballistic missile intercepted over Riyadh and persistent attacks on shipping near the United Arab Emirates and Saudi Arabia, traders found no single catalyst to justify the late-session retreat. Robert Yawger of Mizuho Securities noted that the market is currently navigating a chaotic landscape where multiple geopolitical threats have compounded. Meanwhile, institutions like Deutsche Bank and Barclays remain skeptical of any near-term diplomatic breakthrough, viewing a return to prewar supply levels as a distant prospect. ING analysts added that while record tanker freight rates are inflating costs, the persistent geopolitical risk premium will likely keep prices supported until shipping disruptions subside.