Oil prices varied after tensions eased in the Middle East

Oil prices varied after tensions eased in the Middle East:
Oil prices saw a slight movement on Thursday after falling 3% in the previous session,
with ongoing market concerns about demand this year,
but signs of escalation of conflict in the Middle East might be avoided,
a region home to many of the world’s leading oil producers.


Price Increase
Conflict in the Middle East




Price Increase

Brent crude futures rose by just 13 cents or 0.15% to $87.42 per barrel,
while West Texas Intermediate crude in the U.S. increased by six cents or 0.07% to $82.75 per barrel.
The main crudes had fallen by three percent in the previous session,
due to signs that oil demand this year is lower than expected due to slowing economic
growth in China and increasing U.S. oil inventories, the world’s largest oil consumer.

Since the beginning of April, the average global oil consumption has been 101 million barrels per day,
which is 200,000 barrels per day less than the bank’s forecasts.
Demand has increased by 1.7 million barrels per day since the beginning of the year,
which is less than the bank’s November forecast of a two million barrel-per-day decrease



Conflict in the Middle East

On the other hand, investors are dismissing the possibility of Israel responding
to the attack launched by Iran with drones and missiles on April 13.
Iran carried out this attack in retaliation for an aerial assault that it blamed
on Israel targeting the Iranian embassy complex in Damascus on April 1,
which resulted in the deaths of Iranian military leaders.

Iran, the third-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC),
expects that easing tensions will reduce the chances of oil supply disruptions in the Middle East.
The rise in U.S. oil inventories has put pressure on prices.
On Wednesday, the U.S. Energy Information Administration reported that crude oil inventories
rose by 2.7 million barrels to 460 million barrels in the week ending on April 12,
which contradicts analysts’ expectations of a 1.4 million barrel increase.


Oil prices varied after tensions eased in the Middle East