FX.co ★ Oil retreats shortly after heading for record highs

Oil posted a record surge, suddenly hitting $96 per barrel in late September. Some optimistic projections suggested that oil was on its way to surpass the threshold of $100 per barrel. However, this was a short-lived rally as the market subsequently witnessed a pullback. ICE Futures Europe saw a notable spike in oil prices towards the end of September. Thus, November futures soared past the $96 level, a move not seen since November 14, 2022, according to exchange data. At one point in trading, Brent crude peaked at $96.9, registering an impressive hike of over 3% in just one day. Yet, by the close of the session, the benchmark crude retreated slightly to $96.77. Similarly, WTI crude futures for February rose by more than 3.5%, peaking at $93.89 before settling at $93.75 a barrel. Encouraged by such a robust dynamic, some analysts predicted that global oil prices might escalate to a staggering $120-$150 per barrel in the foreseeable future. Another reason in favor of this forecast is the declining oil supply amid the lack of new drilling sites. Notably, a surge in global oil prices was seen as one of the primary threats to the US economy, and, consequently, a blow to the US dollar. However, markets have their own way of defying predictions. In a sudden twist, oil prices slid to $84 a barrel and are currently hovering around the level of $86.