Brend crude oil prices are receding on Friday, but remain in orbit for the third consecutive weekly rise, after Donald Trump has postponed the US involvement in the Israeli-Iran conflict, the Reuters news agency notes.
On Thursday, prices rose almost 3% after Israeli nuclear targets bombing, while Iran – OPEC’s third largest producer – launched missiles and unmanned aircraft against Israel. No side showed signs of retreat.
“However, while Israel and Iran continue to interfere, there can always be an inadvertent energy that escalates the conflict and affects oil infrastructure,” said PVM analyst John Evans.
“There is an over -supply for 2025, but not if the 20 million (barrels per day) nightmare scenario that will be blocked in the seas of Arabia, no matter how short it may be.”
The strait of the hormoz
Iran has previously threatened to close the strait of the hormone in retaliation for West pressure. Any closure of the strait could limit trade and influence global oil prices.
Trade ships sail near Oman and shipping services are advised to avoid Iranian waters around the strait, shipping sources in Reuters said earlier this week.
“I think the current risk premium is close to 10 dollars/barrels for Iran-Israel, but I don’t see prices return to $ 60 in the near future,” said Panmure Liberum analyst Ashley Kelty.
A escalation of the collision in such a way that Israel would attack export infrastructure or Iran disturb shipping through the strait could then lead to $ 100 per barrel of oil, he added.
Source: Skai
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