HomeEconomyOil prices fell after...

Oil prices fell after Iran attacked Israel

Photo: Saudi Aramco

Market participants lowered risk premiums following Iran’s attack on Israel, which caused limited damage.

World oil prices fell on the first day of the new working week. This was confirmed by the trading results on Monday, April 15.

function news4678818() {
$.get(‘//’ + window.location.host + ‘/ajax/module.aspx?spm_id=444&id=4678818&lang=2&IsAjax=true’, function (data) { $(‘#nk4678818’).html(data); });
}

news4678818();

Thus, June Brent oil futures fell in price on the London ICE Futures exchange by $0.80 (0.88%) to $89.65 per barrel. Last Friday, Brent rose $0.71 (0.8%) to $90.45 a barrel.

May futures for WTI taffeta were down $0.88 (1.03%) at $84.78 a barrel on the NYMEX Mercantile Exchange in New York. In the previous session, the contract increased by $0.64 (0.8%) to $85.66 per barrel.

According to Reuters, oil prices fell as market participants lowered risk premiums after Iran’s attack on Israel, which caused limited damage.

The attack, using more than 300 missiles and drones, was the first attack on Israel by a foreign country in more than 30 years, raising concerns about a wider conflict in the region affecting shipments of oil throughout the Middle East.

But the attack, which Iran said was in retaliation for an airstrike on its embassy in Damascus, caused only moderate damage, with the missiles shot down by Israeli air defenses and with the help of other countries.

“The attack was more calculated in the days leading up to it. Additionally, the limited damage and the fact that there were no casualties meant that there could have been a more measured Israeli response,” said Warren Patterson, head of commodity strategy at ING.

However, he said, “clearly there is still a lot of uncertainty, and everything depends on how Israel reacts now.”

With Iran currently producing more than 3 million barrels per day of crude as the main producer within OPEC, supply risks include stricter enforcement of oil sanctions and that the Israeli response could include attack on Iran’s energy infrastructure, ING said.

But even with a major supply loss, the US could draw more crude from its strategic oil reserves, while OPEC has more than 5 million barrels per day of spare production capacity, it said.

“If prices rise significantly on the back of supply cuts, one would expect the group to seek to put some of this spare capacity back into the market. OPEC does not want prices to rise too much high, due to the risk of demand deterioration “said ING.

As you know, on April 12, oil prices rose in anticipation of a retaliatory attack from Iran, reaching their highest level since October. Market analysts this morning expected at least a short-term increase in prices, but the larger, longer-term implications of the price hike would require significant supply disruptions, such as shipping restrictions in the Strait of Hormuz.


New Correspondent.net on Telegram and WhatsApp. Subscribe to our channels Athletistic and WhatsApp

Source: korrespondent

- A word from our sponsors -

Most Popular

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More from Author

- A word from our sponsors -

Read Now

The DPRK was promised by the “unclear” Poddjakke of Russia in the war against Ukraine

Russian military criminal, secretary of the Russian Council Sergey Shayga, visited Phogyan, where he met with Kim Jong. He promised him that the DPRK would support Russia, in particular, in the war against Ukraine. The parties discussed a joint operation in the Kursk...

In Pryluky, RF Postal House -Topl in the leader of the leader

In Pryluky, a hostile drone hit the house of the head of the local fire department. .in_text_content_22 {width: 300px; Height: 600px; } @Media (min-width: 600px) {.in_text_content_22 {width: 580px; Height: 400px; }} .Adsbygoogle {Touch-Action: Manipulation; } His family was killed: his wife,...

Russians were pushed to Constant and could be shot by a garden from artillery

The Russians have advanced towards Konstantinovka and are already shooting from artillery Ukrainian positions near the city. This is indicated in the report of the Institute of Military Research (ISW). .in_text_content_22 {width: 300px; Height: 600px; } @Media (min-width: 600px) {.in_text_content_22 {width: 580px; Height: 400px;...