Brent Falls 4.2% to $108.68 as U.S. Futures Rebound
Key Facts
U.S. stock futures rose in Monday, November 2, trading, alongside a drop in oil prices and hopes for diplomatic progress between the United States and Iran, according to the Associated Press. Nasdaq futures rose 0.8%, S&P 500 futures gained 0.5% and Dow Jones futures advanced 0.6%. The agency said futures rebounded after a sharp sell-off in the previous session. In its report on Monday trading, it said Brent fell 4.2% to $108.68 a barrel, while U.S. crude dropped 4.2% to $99.74. These prices reflect the snapshot in the report, while EL7 data showed Brent closing at $113.43 on October 30 and $108.71 on November 2.
The rebound in futures came after U.S. stocks on Friday posted their worst daily performance since June, according to the Associated Press. Investors sold artificial intelligence and technology stocks amid growing concern that massive investments in AI would not generate returns, or would not do so as quickly as expected. The agency said the drop in oil provided support for futures as hopes of progress in diplomatic efforts between Washington and Tehran renewed. The move links two factors that occupied investors at the start of the week: energy prices retreating after their rise, and the pressure on technology stocks in the previous session. But oil's direction remained tied to developments in negotiations and the fate of shipping through the Strait of Hormuz.
The Associated Press reported that Iranian negotiators are in Qatar to discuss a proposal that could allow the Strait of Hormuz to reopen within two days if the United States meets several conditions. It added that Iran's foreign minister said there are no direct talks with Washington. The proposal makes the prospect of resuming passage through the strait conditional on those requirements being met, while the report did not say the United States had agreed to them. The strait is a major route for oil flows; the U.S. Energy Information Administration reported that flows through it averaged 20.9 million barrels a day in the first half of 2025, compared with 20.7 million in 2024. The prospect of negotiations and reopening therefore kept Gulf developments at the center of oil-market attention, even as prices fell in Monday trading.
Markets are also awaiting U.S. price and spending data, after the Bureau of Economic Analysis' September release showed the personal consumption expenditures price index rising 0.5% month over month and 3.6% year over year. The core index, which excludes food and energy, rose 0.3% month over month and 3.1% year over year. In the labor market, seasonally adjusted initial jobless claims totaled 194,000 in the week ended October 24, down 1,000 claims from the previous week's revised level. The four-week average of claims was 196,750. These readings provide an economic backdrop for markets in a week that also includes the release of the U.S. jobs report for October, as the Associated Press noted.
Near-term milestones include Tuesday's U.S. elections and the October jobs report scheduled for release on Friday, according to the Associated Press. The Energy Information Administration has also scheduled its weekly petroleum report for data through November 6 for Thursday, November 12, at 12:00 p.m. Eastern time; its calendar notes the Veterans Day holiday. The Bureau of Economic Analysis is scheduled to release its October personal income and outlays report on November 25, 2026, at 8:30 a.m. Eastern time. The Energy Information Administration will release its next energy outlook on November 10; its October outlook put the average spot price of Brent at $105 a barrel in the fourth quarter of 2026, up $14 from the previous month's forecast. In early to mid-November, China plans to send a special envoy to Iran, Oman and Saudi Arabia to focus on reducing tensions and enhancing regional stability, according to the Associated Press.