Oil sheds 1% from investors’ Middle East sentiments

08.01.2020 - Evdokimov Roman
Oil sheds 1% from investors’ Middle East sentiments

NEW YORK- Oil prices declined an estimated 1% gain on Tuesday, losing some recent earnings as the possibility of immediate supply disturbance after US military forces killed top Iranian commander dampened investors’ sentiments.

Brent crude LCOc1 sunk down 64 cents, equivalent to 0.93% or $68.27 per barrel. US West Texas Intermediate (WTI) crude CLc1 declined 57 cents, equivalent to 0.9% or $62.70 per barrel.

Oil prices recorded series of highs from previous sessions brought by heightened level of fear on Middle East crisis and on the possibility of supply disruptions. Such followed after US forces killed Iran’s top commander, Qassem Soleimani on Jan. 3 as Iran promised retaliation. Brent hit its ceiling level since September as WTI recorded strong data since April.

“The expansion in geo-risk premium related to Iran appears to be running out of steam as the complex seems to be taking a ‘wait and see’ attitude ahead of possible Iranian retaliation to last week’s events,” said Jim Ritterbusch, president of Ritterbusch and Associates.

Chevron Corp (CVX.N) Chief Executive Michael Wirth disclosed that oil markets will still be properly supplied despite the emergence of Middle East tensions.

“Fundamentally supply and demand remain where they were before these incidents,” Wirth said.

Consultancy Eurasia Group stated that Iran forces are more likely to focus US military rather than on energy targets.

“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,” the company added.

In line, the United States Maritime Administration yet again released a warning regarding the possibility of Iran and its allies attacking US commercial vessels in the Gulf and vicinity.

Oil underperformed despite intensive compliance on reduction of oil outputs conducted by the Organization of the Petroleum Exporting Countries.

Risk disclaimer "Market Solutions Ltd – Suite 305 Griffith Corporate Centre P.O. Box 1510 Beachmont, Kingstown, St Vincent and the Grenadines is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0128 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of Market solutions Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or Market Solutions limited." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?