Oil prices saw significant declines, with WTI dropping 4.74%, primarily due to news that Israel will limit its military retaliation to targets other than Iranian oil infrastructure. Previously, oil prices were buoyed by concerns of potential strikes on Iranian facilities, but traders are now shifting their focus back to market fundamentals, revealing an oversupply that might be compounded by potential OPEC output increases in December. As a result, WTI has nearly lost all gains since the missile strikes on October 1st, flirting with falling below the $70 mark.
In another discussion, the rise of nuclear power is gaining traction among major tech firms, driven by increasing energy demands from AI technologies. As global electricity use from data centers is expected to double by 2026, companies like Google and Microsoft are securing agreements with nuclear power providers despite the high costs and regulatory hurdles associated with building new plants. Support for nuclear energy has surged, especially among younger generations, although regulatory approvals for new Small Modular Reactors (SMRs) remain lengthy. The intersection of AI, electric vehicles, and energy requirements shows increased urgency for sustainable, reliable power sources, prompting tech giants to invest in nuclear capabilities.