Oil closes lower, Brent slips below $90

Oil drilling rigs

Oil prices closed lower today, Oct. 23, amid profit-taking as investors evaluated the diplomatic efforts aimed at containing the ongoing conflict in the Middle East.

Brent crude futures for December delivery fell 2.55%, or $2.33, to settle at $89.83 per barrel. WTI crude for December delivery slumped 2.95%, or $2.59, to $85.49 per barrel.

JP Morgan said in a research note that, although there is room for concern that the ongoing war could turn into a broader conflict in the Middle East, it is unlikely to lead to higher oil prices for a long period, Insider website reported.

Meanwhile, the US Energy Information Administration (EIA) said: “Venezuela’s oil production and infrastructure have been exposed to challenges that have long hindered access to capital and regular maintenance, and the potential for further growth remains uncertain because new investments will be needed to achieve additional production.”

According to the EIA data, the average US crude oil production is expected to reach 12.92 million barrels per day this year and 13.12 million barrels per day in 2024, which is the highest level ever.