Oil continues to fall despite geopolitical tensions: Oil prices dropped after their first consecutive weekly decline this year,
as traders assessed potential next moves from Iran and Israel amid escalating tensions in the Middle East.
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The price of Brent crude fell to around $87 per barrel after losing 3.5% last week,
the largest decline since early February.
The United States imposed new sanctions on the Iranian oil sector
and approved new funding for Ukraine in its war against Russia.
Since the beginning of the year, oil has risen by about 13% due to geopolitical tensions and OPEC+ supply cuts,
which have reduced supplies in the market.
Investors will focus on a slew of US economic data this week, including the Federal Reserve’s preferred inflation gauge,
which will provide further clues on the course of monetary policy.
Since March 2021, fund managers have been the most optimistic about Brent crude,
buying oil contracts to benefit from any rise amid increasing geopolitical risks.
Other markets also indicate an upward trend, with call options—which profit when prices rise
—trading at a premium over put options.
Additionally, earnings from the world’s largest oil companies, including Total Energies, Exxon Mobil, and Chevron,
are due this week, along with Asian companies such as Reliance and Sinopec.
Oil continues to fall despite geopolitical tensions