Oil below $100 per barrel. what next
Since the beginning of the week, oil prices have fallen by 17%. The market expects a rapid normalization of the situation in the Middle East after news of negotiations through Qatar and the victory of the Democrats in the mid-term elections in the United States.
Volatility in oil prices will increase, notes Alpha Investments analyst Igor Galatsiov. The market will closely monitor geopolitics and react to the slightest news.
It is likely that the peak in oil prices has already passed and additional prices will gradually decrease. The process can be volatile, so short positions may make sense after significant bounces.
The drop in oil prices will limit the profit potential of Russian oil producers in 2027. But average prices will remain quite high until the end of the year. This allows us to expect strong fourth quarter reports and generous dividends for 2026.
Favorites of Alpha Investments analysts from the oil and gas sector: Lukoil, Rosneft, Tatneft and Novatek.