Oil prices lower as Mideast tensions ease
Oil prices stayed slightly lower as the risk of hostilities between Israel and Iran diminished.
As the risk of hostile actions between Israel and Iran diminishes, oil prices continue to experience slight declines.
Brent crude prices approached $87 per barrel in recent trading, marking a decrease of 0.3%, while West Texas Intermediate (WTI) crude prices remained above $82 per barrel, reflecting a reassessment of the market's perception of escalating tensions in the Middle East.
Israel is currently focused on eliminating Hamas's final strongholds in the Gaza Strip and rescuing hostages, which may prolong the tense situation in the region. Additionally, the U.S. Congress is further restricting Iran's oil sector, but analysts believe the impact on exports will be limited.
Oil prices have remained elevated this year due to geopolitical risks and supply cuts by OPEC+, but have seen consecutive declines in recent weeks. Signals of backwardation in the futures market still indicate market strength, with the spread between the most recent two contracts for Brent crude increasing from 79 cents a week ago to 94 cents.
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