HOUSTON: Oil prices tumbled by around $4 a barrel on Monday after Israel`s retaliatory strike against Iran`s military on Saturday bypassed oil and nuclear facilities, not disrupting energy supplies.

Brent futures were down $4.20, or 5.52 per cent, at $71.83 a barrel at 11:37 a.m. CDT (1637 GMT), while WTI US crude futures lost $4.08, or 5.68pc, to $67.70.

Both Brent and US West Texas Intermediate crude futures hit their lowest since Oct 1 at the open.

`Obviously, this is a perfect example of a headlinedriven market,` said Phil Flynn, senior analyst at Price Futures Group. `We still have a lot of geopolitical risk.

The benchmarks gained 4pc last week in volatile trade as markets reflected uncertainty over the looming US election and the extent of Israel`s expected response to the Iranian missile attack of Oct 1.

Citi lowered its Brent price target for the next three months to $70 a barrel from $74, factoring in a lower risk premium in the near term, analysts led by Max Layton said in a note.

The Organisation of the Petroleum Exporting Countries and its allies, a group known as Opec+, kept oil output policy unchanged last month, including a plan to start raising output from December. The group will meet on Dec 1 ahead of a full meeting of Opec+.

Tudor, Pickering Holt analyst Matt Portillo said WTI could trade much lower in the coming year.-Reuters