Samia al - Faqi
Oil prices declined by about 4 per cent today, Monday, after the United States and Iran stopped military strikes during the weekend, following two weeks of attacks, thus bolstering hopes that a diplomatic solution could help to calm the conflict and resume shipping traffic across the Harms Strait.
Earlier contracts for Brent crude decreased by $3.96, or 4.1 per cent, to $92.82 per barrel, having fallen short of the main support level of $90 earlier in the meeting.
The United States mediator ' s crude west of Texas also decreased by $4.02, or 4.5%, to $85.29 per barrel.
The two contracts are traded at the lowest level in about a week, after gains over the past three weeks.
Brent ' s crunch had touched a level of $100 per barrel after the conflict, which had reduced oil shipments across the Hems Strait to the Red Sea, hampering exports of the world ' s largest oil exporter, Saudi Arabia, to Asia through the Bab al-Mandab Strait.
In statements made by Fox News and other American media yesterday Sunday, United States Ambassador Mike Waltz said that United States President Donald Trump had decided to suspend United States attacks to allow more time for diplomatic efforts.
Bank INJ analysts said in a client note: " Oil prices fell sharply at the beginning of dealings after the United States and Iran refrained from taking further military action, which provided the first concrete indication of the possibility of calming tensions. "
They added: " The price movement in the oil market this morning clearly reflects the extent to which the market is thwarting for any positive news. "
Despite the suspension of the attacks, Kabler ' s data showed that less than 10 ships for the transport of commodities crossed the Hem symbol Strait every day during the weekend.
Seoul Kafonik, analyst at MTST Marky, said that " any recovery in shipping traffic across the Hems Strait will probably be slow and partial, as many shipping companies continue to be cautious and want greater confidence in the safety of navigation before paying more empty ships to the Strait " .
At the same time, traffic through the Bab al-Mandab Strait decreased yesterday, after attacks on Saudi oil installations on the Red Sea coast by a third giant Chinese oil tanker was able to cross the Strait.
Nevertheless, some analysts continue to expect continued market support if oil supplies continue to be affected by continuing shipping risks in the Middle East and the war between Russia and Ukraine.
وقال محللو بنك يو أو بي في مذكرة: “مع اتساع نطاق الصراع في الشرق الأوسط إلى البحر الأحمر، واستهداف طائرات أوكرانية مسيرة سفنًا ومصافي نفط روسية… فإن استمرار اضطرابات الإمدادات من المرجح أن يبقي أسعار النفط عند مستويات مرتفعة، وأن يواصل تشكيل مخاطر صعودية على التضخم العالمي.”
