Singapore, April 22, 2024 (Financeflashnews) – Oil prices fell on Monday morning in response to comments from Iranian and Israeli officials suggesting that neither country wants to escalate conflict in the Middle East. Prices were also pressured by a surprise build in U.S. oil inventories.
Brent oil futures for June delivery fell to $86.54 (81.24 euros) a barrel by 7:30 AM GMT, down 75 cents (0.86%) from their previous close. U.S. West Texas Intermediate (WTI) crude for May delivery was down 69 cents (0.83%) at $82.45 a barrel.
Tensions in the Middle East had flared in recent weeks after an Israeli airstrike on an Iranian consulate in Damascus, Syria, and a subsequent Iranian retaliation involving hundreds of missiles and drones. However, damage was minimal and oil prices, which had initially jumped by more than 3% after the attacks, corrected sharply lower after both sides signaled they did not want to escalate the conflict.
Investors had been closely watching developments in the Middle East, as Iran is the third-largest oil producer in OPEC. The easing of tensions helped to push prices lower.
The decline in prices was also supported by data showing a surprise build in U.S. oil inventories. Analysts had expected inventories to rise by 1.4 million to 1.6 million barrels, but according to data from the U.S. Energy Information Administration, inventories rose by 2.7 million barrels.
The direction of oil prices in the coming days will be influenced by a variety of factors, including geopolitical tensions, the outlook for demand, and the state of inventories.
