World oil prices on Thursday, November 12, resumed their decline and approached the lowest levels in two months. The main factor was a sharp increase in production in Saudi Arabia and Iraq, which eased concerns about a shortage of raw material on the world market.
According to Bloomberg, Brent crude futures were trading near $91 per barrel, and American West Texas Intermediate (WTI) about $85. The decline came after a brief recovery in prices on Wednesday, when Brent rose by 1.4%.
Saudi Arabia reported to OPEC a 26% increase in oil production in October. According to the Financial Times, output reached about 10.6 million barrels per day - one of the highest levels in recent years. Iraq also increased production to the maximum level since the start of the war in the Middle East.
The Persian Gulf countries are gradually restoring export flows, despite the unstable security situation in the region. In particular, Saudi Arabia has increased oil transportation by pipeline to the Red Sea, which allows partially bypassing the Strait of Hormuz.
The growth in supply is taking place against the background of restrained demand. This reduces concerns about oil shortages and increases pressure on world quotes.
An additional factor remains expectations of easing the conflict between the US and Iran. Investors hope that after the victory of Democrats in the midterm elections to the US Congress, Washington will step up the search for a diplomatic settlement. However, there is still no significant progress in the negotiations.
Despite the November drop, Brent remains more than 50% more expensive than at the beginning of 2026. Further price dynamics will depend on the stability of oil supplies from the Persian Gulf and developments around Iran.
By materials from: Bloomberg, Financial Times
