Brent was positioned lower on the first day of the week although above $86 a barrel.
He raw referential Brent fell on Monday, although it remained above $86 a barrel, as traders once again focused their attention on inflation, while tensions in middle East they have not altered the actual supply of oil so far.
In the morning, the futures of the Brent They lost 55 cents, to $86.74 per barrel. He West Texas Intermediate (WTI) For May, which expires on Monday, fell 33 cents to $82.81, and the most active contract for June was down 52 cents to $81.70.
Both benchmarks rose more than $3 a barrel early on Friday after explosions were heard in the Iranian city of Isfahan, in what several sources described as an Israeli attack.
Middle East, key for the market
Profits dissipated after Tehran downplayed the incident and said it did not plan to retaliate, a response that seemed aimed at avoiding a region-wide war.
The market reaction is another example that it is only reasonable to expect a prolonged rise in the price of oil if the Strait of Hormuz – the world’s most important oil artery, transporting a fifth of the world’s supply – would be interrupted or Saudi Arabia would be directly involved in the conflict, he said. Tamas Vargafrom the PVM brokerage.
Giovanni Staunovo, UBS strategist, added that geopolitical risk premiums typically do not last if supply is not actually disrupted, and added that high spare capacity in a few oil-producing countries can offset any supply disruption.
On the other hand, according to a Reuters analysis, the abundant supply of some of the main types of crude oil is limiting the impact of conflicts in middle East on oil futures.
The strength of the dollar and ample production capacity are other reasons why the price of Brent is unlikely to reach $100 per barrel in the near future, according to Varga.
Source: Ambito
