Energy
Wednesday, April 17th, 2024 2:14 pm EDT
Key Points
- U.S. crude oil dropped below $85 a barrel for the third consecutive trading session, as concerns over a wider war between Israel and Iran, which could disrupt supplies, were dismissed by the market.
- The West Texas Intermediate contract for May delivery fell 46 cents to $84.89 a barrel, while June Brent futures were down 51 cents at $89.51 a barrel, with both U.S. oil and the global benchmark experiencing nearly a 1% decrease for the week.
- Analyst John Evans noted that oil prices were unwinding some of the “war premium” attributed to ongoing tensions surrounding the Gaza conflict and Iran’s actions against Israel, despite the continuing strife. However, statements from U.K. Foreign Secretary David Cameron and Iranian President Ebrahim Raisi reflected the ongoing tensions, with Cameron acknowledging Israeli actions against Iran and urging minimal escalation, while Raisi warned of a robust response to any Israeli counterattack.
U.S. crude oil experienced a third consecutive decline in trading on Wednesday, falling below $85 a barrel amid market dismissal of the potential for a broader conflict between Israel and Iran that could disrupt oil supplies. The West Texas Intermediate contract for May delivery dropped 46 cents to $84.89 a barrel, while June Brent futures were down 51 cents at $89.51 a barrel. Both U.S. oil and the global benchmark saw a decrease of just under 1% for the week. Analysts attribute this decline to the unwinding of the “war premium” that had been factored into oil prices due to ongoing tensions surrounding the Gaza conflict and Iran’s missile actions against Israel. Despite concerns over the Israel-Iran conflict, which have prompted speculation about potential oil price spikes, there’s a prevailing sentiment that cooler heads may prevail, with Israel urged to exercise restraint. However, statements from U.K. Foreign Secretary David Cameron and Iranian President Ebrahim Raisi reflect the heightened tensions, with Cameron acknowledging Israel’s actions against Iran and urging minimal escalation, while Raisi warned of a robust response to any Israeli counterattack.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/04/17/us-crude-oil-falls-below-85-as-traders-discount-iran-israel-war-risk.html
