Oil Price Drops as Middle East Tensions Ease
The global oil market experienced a rollercoaster day on Friday, as Brent North Sea crude fell below $97 per barrel after surging past $100 the previous day due to escalating Middle East strikes.
The price drop of around four percent helped stabilize US and European stock markets. The key US contract, West Texas Intermediate, declined more than three percent following a six percent gain on Thursday.
Analyst Giovanni Staunovo from UBS noted that despite some ships being unable to pass through the Bab al-Mandeb Strait, others were still able to cross with Saudi crude, reducing the risk of an even tighter oil market.
Meanwhile, Wall Street saw mixed results, with both the Dow and S&P 500 rising while the Nasdaq retreated. Tech stocks continued to face selling pressure.