Oil drops nearly 3.5% to lowest close in more than two weeks

Oil drilling rigs

Oil deepened its losses today, Oct. 30, amid diplomatic efforts to contain geopolitical tensions that remain a threat supplies.

Brent crude futures for December delivery plunged 3.35%, or $3.03, to close at $87.45 per barrel—marking the lowest level since Oct. 12.

WTI crude for December delivery dropped 3.75%, or $3.23, to record $82.31 per barrel.

In a report published today, the World Bank said that the effects of the conflict on global commodity markets, so far, have been limited. Oil prices have risen about 6% since the beginning of the conflict.

Experts note that the outlook for commodity prices will quickly become bleak if the conflict escalates.

Oil prices will rise by 21-35% to between $109 and $121 per barrel in the “moderate turbulence” scenario, according to experts. Prices are likely to jump 56-75% initially to between $140 and $157 per barrel in the “major turbulence” scenario.

The World Bank expects global oil prices to average $90 per barrel in the last quarter of this year, and to fall to an average of $81 in 2023 as demand slows.