Apr 23, 2024 (MENAFN via COMTEX) --
(MENAFN - The Rio Times) On Monday, the oil markets witnessed a notable decline in prices, triggered by growing confidence that tensions between Iran and Israel would not escalate into a broader regional conflict.
Initially, oil prices fell nearly 1% but saw a partial recovery following Israeli Prime Minister Benjamin Netanyahu's announcement of intensified military actions against Hamas.
The trading day closed with West Texas Intermediate (WTI) for June delivery down by 0.39% ($0.32), settling at $81.90 per barrel on the New York Mercantile Exchange.
Brent crude for June experienced a 0.33% decline ($0.29), closing at $87.00 per barrel on the Intercontinental Exchange.
Oil price decline reflects not just geopolitical dynamics but also shifts in demand and supply dynamics.
Analysts, such as Rittersbuch, note that despite geopolitical tensions, weakening demand and strong U.S. oil inventories could lead to record oil production.
This potential is supported by a significant number of active drilling platforms and wells.
Geopolitical Influences on the Global Oil Market
RBC Capital has pointed out that, unless the Iran-Israel conflict escalates further, significant gains in oil prices are unlikely.
This is due to Iran's unchanged relationships with key regional players like Saudi Arabia and the United Arab Emirates.
Adding to the complexity, Josep Borrell, the High Representative of the European Union , announced expanded EU sanctions on Iranian drones. These now include missiles and their potential transfer to Russia.
Investment strategist Louis Navellier advised clients to maintain their positions in oil futures, anticipating potential market shifts.
The Iraqi government issued warnings about potential further delays in resuming oil exports from Kurdistan to Turkey via pipeline.
This pipeline has been inactive for over a year, adding another layer of uncertainty to the global oil supply chain.
These developments depict a nuanced picture of the global oil market, influenced by both geopolitical events and fundamental economic factors.
They demonstrate the intricate interplay between politics and commodity markets.
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COMTEX_451286918/2604/2024-04-23T10:52:13
