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Oil Prices Fall Due to Rising Geopolitical Tensions in Middle East: Iran and Israel at Risk

Prices fell Crude oil In early trading on Monday, affected by a renewed focus on market fundamentals, after they had declined Iran AndIsrael One of the risks of an increase in hostility in the Middle East after the apparently limited Israeli strike on Iran last Friday.

Futures fell For Brent crude 67 cents to $86.62 a barrel by 04:15 GMT.

The closest May contract for US West Texas Intermediate crude, which expires today, fell 63 cents to $82.51 a barrel. The most active June contract fell 64 cents to $81.58.

“Brent crude prices failed to maintain their initial rise, amid widespread expectations that geopolitical tensions between Israel and Iran may ease due to Tehran’s calm response,” said Yip Jun Rong, strategic market analyst at IG .

The two benchmark crude oils rose by more than $3 per barrel, with the price of a barrel of Brent exceeding $91, in early trading on Friday, after explosions were heard in the Iranian city of Isfahan, which said sources like Israel’s attack, but Tehran reduces the impact and says that it does not intend to respond reduced the benefits.

“The expected increase in US crude inventories didn’t help matters either,” the market strategist told Reuters.

US crude inventories rose by 2.7 million barrels, according to data from the Energy Information Administration last week, which is nearly double what analysts had expected.

Yesterday, Bloomberg quoted Gita Gopinath, Senior Deputy Director General of…International Monetary Fund She said, “If there is a dangerous increase, which means a much wider regional increase than what we have seen so far, then yes, we could be exposed to a serious oil shock…”

It should be noted that Iran is a major producer of crude oil, with an average daily production of 3 million barrels at the moment, despite the US sanctions, as long as the production is under normal conditions amounting to 3.9 million barrels per day.

2024-04-22 08:20:53
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