Oil Prices Plunge As Investors See Mideast Supply Troubles

Oil Prices Plunge As Investors See Mideast Supply Troubles

Recently, oil prices inched down in the commodity market.

The matter happened as investors reconsidered the prospect of Middle East supply disruptions in the wake of the United States, assassinating a top Iranian military commander.

Meanwhile, Brent crude slumped by 1.5% to trade at $67.86 per barrel. Moreover, it was at a low level by $68.14, down 77 cents.

On the other hand, the U.S. West Texas Intermediate (WTI) crude futures were at $62.62. They have been declining 65 cents. The drop was after an earlier dropping of 1.5% to an intra-day low of $62.30.

However, prices lifted during the last two sessions.

Brent hits its sharpest since September, while WTI rose to the most since April.

After the improvements, it was followed by concerns of an intensifying tension and the possibility of Middle East supply disruptions.

The matter was all after the January 3 drone attack in Baghdad that assassinated Iran’s Qassem Solemani.

However, some specialists have softened anticipations regarding a widespread conflict.

A Few Supply Disturbance

Elsewhere, the National Australia Bank’s head of commodity research, Lachlan Shaw, stated, “The market’s clearly worried about the potential for the supply disruption. But there is no obvious path forward from here.”

 

Moreover, he indicated that it is all a matter of circumstances that may perhaps affect oil production or not.

 

He also added that the market looks like it is recalibrating in the previous 24 to 36 hours on some of the possibilities.

 

In a different statement, Lachlan also stated that Iran might demand foreign currency earnings from persistent oil exports.

 

On the other side, Consultancy Eurasia Group clarified that Iran might focus more carefully on U.S. military objectives and not on energy targets.

 

The group communicated, “That’s not to say it won’t continue low-level harassment of commercial shipping or regional energy infrastructure. But these activities will not be severe.”

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