Energy markets remain at the center of attention amid an increasingly unstable geopolitical backdrop. Brent crude is down 3.96% to $96.70 per barrel, while WTI has slipped to $88.84 per barrel. The decline extends across the energy complex, with refined products also posting notable losses. Today's move is largely driven by profit-taking following the sharp gains recorded in the previous session. Overall, the energy market is showing broad-based weakness across the main futures contracts.
The latest pullback comes after an exceptionally strong rally on Thursday, when Brent settled above $100 per barrel for the first time since May and WTI surged 6.2%. Following those gains, traders have started to consolidate positions and lock in profits, leading to a temporary easing in prices.
The main catalyst behind Thursday's rally and the geopolitical tensions that continue to weigh on markets s the attack by the Iran-backed Houthi rebels on two Saudi oil tankers in the Red Sea. The incidents have renewed concerns over the security of one of the world's most strategic oil shipping routes, adding another source of geopolitical risk alongside the ongoing tensions in the Strait of Hormuz. Adding to supply concerns, Kazakhstan has temporarily reduced its crude oil production after the forced shutdown of its main export route, further tightening the outlook for global oil supplies.