The price of West Texas Intermediate (WTI) was trading at $76.05 at the time of this writing. Indeed, WTI Crude fell to levels not seen since this July. What is behind the recent drop in oil prices?
Last Thursday, WTI Crude fell below $78 a barrel. Oil prices have been impacted by weak economic data. For example, manufacturing PMI in China came in at lower than expected, spooking analysts in the developed world. Meanwhile, the ongoing Israeli campaign has pledged to eradicate Hamas. However, the civilian toll has attracted criticism and protests in the United States and other parts of the world.
Initially, there were concerns that the Hamas-Israel conflict could draw in other major players in the region like Hezbollah. Iran, Israel’s chief adversary in the region, could also utilize its other proxies to terrorize Israel’s population. Fortunately, the conflict has been prevented from spreading into a wider war.
Exxon (NYSE:XOM) is a Houston-based company that is engaged in the exploration and production of crude oil and natural gas in the U.S. and around the world. Shares of Exxon Mobil have dropped 6.7% month-over-month as of close on Thursday, November 9. That has dragged the stock into negative territory in the year-to-date period.
This fall, Goldman Sachs predicted that WTI Crude will reach $100 by June 2024. Investors who subscribe to this viewpoint may look to see this recent dip as an opportunity.