Oil prices continue to decline following news from the Middle East
Yesterday, after 10 PM Polish time, the *Washington Post* reported that Israel does not plan to target oil-related sites or energy infrastructure in Iran. Of course, the world is still speculating on when Israel will launch a retaliatory strike. After the U.S. decided to deploy an additional missile defense system in Israel, there was speculation that an Israeli attack was imminent.
The absence of an attack on oil infrastructure does not threaten the supply of over 3 million barrels per day, nor the export of around 1.7 million barrels per day. As a result, the risk of Iran blocking the Strait of Hormuz is currently low. Nevertheless, it’s worth noting that Israel has recently crossed even its own "red lines" quite frequently.
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Open real account TRY DEMO Download mobile app Download mobile appThe oil market is removing the premium associated with the risk of supply disruptions, and additionally factoring in weakness from China and OPEC's lowered demand forecasts.
Today’s price drop is 2%, and WTI oil is now testing levels close to $70 per barrel, although just yesterday it opened at $75 per barrel. It's also worth noting that in two days, there will be a rollover in the oil market, though the backwardation has significantly decreased. Since yesterday, oil has lost more than 6%, and following the *Washington Post* report after the Wall Street session, oil prices have dropped over 4%.
Source: xStation 5
