Brent crude settled at $116.72 a barrel Friday, its strongest close since June 2022, as market observers debated how much traders were pricing in the risk of renewed fighting.
The Associated Press reported that the benchmark rose 3.1% during the session. EconoTimes previously covered the October gain and Friday settlement in a broader account of U.S. market moves.
In an Oct. 24 post, Robin J Brooks said the rise appeared to reflect expectations of renewed fighting after the U.S. midterm elections, and called the resulting risk premium excessive. He judged the risk premium excessive and noted that the December 2027 Brent future had changed little as the front-month contract climbed. Brooks argued that near-term risk pricing explained much of the move.
Menzie Chinn, writing on Econbrowser, said that explanation was plausible. Chinn said recent surprises in the conduct of the war and presidential strategy could lead investors to account for disruptions beyond those seen in earlier episodes.
