{"id":10490,"date":"2024-04-22T11:35:16","date_gmt":"2024-04-22T11:35:16","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=10490"},"modified":"2024-04-22T11:35:16","modified_gmt":"2024-04-22T11:35:16","slug":"brent-hovers-above-86-as-traders-unfazed-by-mideast-conflict","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/10490\/","title":{"rendered":"Brent hovers above $86 as traders unfazed by MidEast conflict"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Global benchmark Brent slipped on Monday though it remained above $86 a barrel as traders turned their focus back to inflation with tensions in the Middle East having so far left actual oil supplies unperturbed.<\/p>\n

Brent futures were down 55 cents to $86.74 a barrel by 1020 GMT.The front-month U.S. West Texas Intermediate (WTI) crude contract for May , which expires on Monday, fell 33 cents to $82.81 a barrel in tepid trade.<\/p>\n

The more active June contract dipped 52 cents to $81.70 a barrel.<\/p>\n

Both benchmarks spiked more than $3 a barrel early on Friday, after explosions were heard in the Iranian city of Isfahan in what sources described as an Israeli attack.<\/p>\n

Gains dissipated after Tehran played down the incident and said it did not plan to retaliate, a response that appeared gauged towards averting a region-wide war.<\/div>\n
The market reaction is yet another example that it is only reasonable to expect a protracted oil price rally if the Strait of Hormuz – the world’s most important oil artery carrying a fifth of global supply – was disrupted or Saudi Arabia directly drawn into the conflict, noted Tamas Varga of oil broker PVM.<\/div>\n
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Geopolitical risk premiums tend not to last if supply is not actually disrupted, added UBS strategist Giovanni Staunovo, adding that the high spare capacity of a few oil-producing countries can compensate for any supply disruptions.<\/div>\n

Meanwhile, plentiful supplies of some of the biggest crude grades are limiting the impact on oil futures of conflict in the Middle East, a Reuters analysis found.<\/p>\n

On the economic front, inflation is back in focus, with comments from Federal Reserve officials and a run of hotter-than-expected inflation data forcing a paring back of rate cut expectations last week.<\/div>\n

Economic concerns have again become a bearish factor of the crude market, with prices under pressure due to a large build in the U.S. stockpile and a hawkish Fed that has led to a strong dollar, said independent market analyst Tina Teng.<\/p>\n

A strong dollar makes oil more expensive for holders of other currencies.<\/p>\n

The stronger dollar and the comfortable spare production capacity, were other reasons the Brent price was unlikely to hit $100 a barrel in the foreseeable future, said PVM’s Varga.<\/p>\n

Updated on