Oil Prices Extend Losses as Concerns over Supply Disruption from Iran Eased

The oil prices fell on Wednesday after the report that Iran may not be involved in the Hamas attack, which lifted the market concerns over tight supply in the global market as Iran produces over 3 million barrels of oil per day.

Brent crude for December contract fell $1.83 or 2.1% on Wednesday to settle at $85.82 a barrel. Meanwhile, U.S. West Texas Intermediate (WTI) for November dropped $2.48 or 2.9% to close at $83.49 a barrel.

Oil prices continued to decline in the morning session of Asian markets on Thursday as of 11:50 BKK time (GMT+7). Brent crude slipped by $0.22 or 0.26% to $85.60 per barrel, while WTI fell $0.34 or 0.41% to $83.15 per barrel.

It was reported that the U.S. intelligence had been gathering information regarding the tie of Iran and Hamas fighters in the attack on Israel. The New York Times reported that high ranking Iranian leaders were surprised by the Hamas attack in Israel, citing several American officials.

Traders were concerned of a potential disruption of oil production in Iran that can produce more than 3 million barrels of oil per day if Iran is tied to the attack.

According to the report from The New York Times, the US intelligence did not find any evidence that Iran was directly helping Hamas planned the attack.