Oil prices plunged on Monday, extending last week's steep decline, after President Donald Trump indicated he was unlikely to order fresh strikes on Iran as long as negotiations continue. Brent crude futures fell 5.68% to $92.80 a barrel, while West Texas Intermediate dropped 4.47% to $85.91. The move followed a 16% weekly plunge in Brent, the steepest since the onset of the pandemic.
Investors have increasingly priced in de-escalation, though attacks on vessels near the Strait of Hormuz persist. Iran has said it will not negotiate without practical steps from Washington, while Saudi Arabia and Oman stressed the importance of diplomatic efforts to safeguard maritime security. Supply concerns have also eased, with JP Morgan estimating a global oil surplus of about 1.4 million barrels per day in October, and a Reuters survey showing OPEC production rose by 1.38 million barrels per day to 22.87 million bpd.
Despite the bearish tone, risks remain. A fire was extinguished after Saudi Arabia's East-West pipeline was struck, though operations were unaffected. Attacks on shipping and energy infrastructure continue to pose threats to supply.
Gold rises as inflation worries ease
Gold prices climbed Monday, supported by a weaker US dollar and declining crude prices, as investors looked ahead to US inflation data. Spot gold gained 1.49% to $4,126.06 an ounce, while US gold futures for December delivery settled 1.6% higher at $4,140.70. Lower oil prices helped ease concerns that energy costs would keep inflation elevated and force central banks to maintain restrictive policies.
Gold had gained around 5% last week amid hopes that US midterm election results could support efforts to end the conflict with Iran. However, stronger-than-expected US employment data subsequently reinforced expectations of higher interest rates. Markets currently see an 84.5% probability of a Federal Reserve rate increase in December, according to CME's FedWatch tool. Investors are awaiting US consumer price data on Tuesday and producer price figures on Friday for further clues on the central bank's policy outlook.
Nvidia investigates reports involving CEO Jensen Huang
Nvidia shares fell 5.2% on Monday after the company announced an independent investigation into reports that CEO Jensen Huang had been targeted by a foreign intelligence operation. The company's independent directors and outside lawyers will examine the reports. Nvidia said it had no reason to believe confidential information had been compromised and reaffirmed its confidence in Huang.
The development adds uncertainty for the chipmaker ahead of its November 17 earnings report, with shares already under pressure from concerns about AI valuations and the financing required for data-centre expansion. The investigation also follows reports concerning Huang's relationship with Alice Huang, a former executive at Singapore-based Megaspeed, which buys Nvidia chips. US authorities have reportedly investigated suspected Chinese intelligence links, while Megaspeed faces separate scrutiny over restricted-chip exports.
Tesla to wind down Cybertruck production
Tesla CEO Elon Musk defended the company's decision to wind down Cybertruck production in approximately eight months, rejecting reports that the move was driven by poor sales or unprofitability. In a post on X, Musk said the Cybertruck's order rate exceeded its production rate and that Tesla would try to build as many vehicles as possible before shutting down the production line. He added that the company would have to return deposits to many customers.
Musk said the decision reflected the opportunity cost of continuing to manufacture the vehicle rather than expanding production of the Cybercab, Tesla's planned autonomous vehicle. Tesla sold 20,237 Cybertrucks in the US last year, down 48% from 38,965 in 2024, according to figures cited by Reuters. The number was also well below Musk's earlier annual sales prediction of 250,000 vehicles. Musk said expanding factory capacity was difficult, arguing that Tesla needed to prioritise scaling Cybercab production.
This article is for informational purposes only and does not constitute financial advice.
