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Oil Market Confident of Middle East Relief

Oil Market Confident of Middle East Relief 

This morning, the oil market is down for the fifth day in a row. According to 09:50 Moscow time, March Brent futures fell 0.20% to $ 65.26 a barrel, while February futures on WTI fell 0.18% to $ 59.45 a barrel.

 oil market [19659003] Oil <a href= becomes cheaper against the background of a certain relaxation of tension between the USA and Iran. The crisis between the countries exacerbated the deaths in Iraq of Iranian General Kassem Suleimani. He was killed as a result of an American special operation.

Iran in response fired rockets at bases in Iraq, where the military contingent of the US Army is located. According to Washington, none of the US citizens were injured. After the strike, Washington said it would confine itself to imposing new sanctions.

Eurasia Group analysts quoted by Reuters believe the US and Iran “seem to seek de-escalation ” to minimize the risk of war in the Middle East region and serious disruptions in oil supplies.

The oil market also reacted to the growth of stocks in the USA

An additional factor in pressure on oil quotes this week was the growth of stocks of raw materials in the USA, while analysts, on the contrary, expected a decrease.

In particular, according to the Ministry of Energy, US commodity reserves grew by 1.2 million barrels over the past week. Analysts had expected reserves to fall by 3.5 million barrels.

“Oil prices will depend on possible supply disruptions compared to the available free capacities and oil reserves in the world. And also from the reaction of American oil companies to the price of oil, ”analysts at J.P. Morgan said.

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