A temporary easing of Iran-Israel tensions in the Middle East amid attacks and counter-attacks has reduced crude oil prices in the international market.
It was reported on Tuesday (April 23), on Monday (April 22) the price of Brent crude oil, the international market of crude oil, decreased by 0.33 percent or 29 cents compared to the previous day to trade at $87 per barrel.
On the other hand, the price of US West Texas Intermediate (WTI) fell 29 cents or 0.35 percent. In the market, this oil is traded at 82 dollars 85 cents per barrel.
Yip Jun, an analyst at the world-renowned financial institution IG Market, said that the price of Brent crude oil fell because Iran’s reaction against Israel was somewhat normal. Moreover, he also mentioned that the growing crude oil reserves of the United States are currently increasing the pressure on sales.
Last week’s Energy Information Administration data showed U.S. crude oil inventories rose by 2.7 million barrels, nearly double analysts’ forecast of a 1.4 million barrel increase.
Analysts believe that the United States has recently passed a large military aid package for Israel. US sanctions against Iran’s oil production could be extended. As a result, Iran’s oil extraction will be hindered. Which can have a negative impact on the international oil market.
Source: Reuters.
