Middle East

Oil prices recede in Iran’s oil outlook

February 18, 2022

Oil prices fell after a sharp weekly volatility as the outlook for additional supply from Iran outweighed the threat of Russia’s invasion of Ukraine, which could disrupt supply.

Brent crude LCOc1 futures fell 68 cents (0.7%) at 0124 GMT to $ 92.29 a barrel, down 1.9% from the previous session.

West Texas Intermediate (WTI) crude oil CLc1 futures fell 67 cents (0.7%) to $ 91.09 a barrel after falling 2% in the previous session.

Both benchmark contracts are headed for the first weekly fall in nine weeks after reaching their highest points since September 2014, embodying contracts to revive Iran’s 2015 nuclear deal with world powers. It was made into.

Diplomats said the draft agreement outlines a series of steps that will ultimately lead to granting an exemption from oil sanctions. It will bring about 1 million barrels of oil back to the market per day, but the timing is unclear.Read the full text

“Nevertheless, the one million barrels / day of anxiety that could hit the oil market put pressure on the price of Brent crude,” an ANZ Research analyst said in a memo.

Analysts say OPEC +, the Organization of Petroleum Exporting Countries, and its allies are struggling to reach production targets, causing prices to fall sharply in the short term, even if Iran’s oil is expected to return further. I don’t expect that.

“The OPEC + reserve is due to the disappointing growth in OPEC + supply as global oil reserves hit a seven-year low and OPEC + supply growth is disappointing,” said Vibeck Dahl, an analyst at the Commonwealth Bank (CBA). The oil market is vulnerable to supply disruptions because of questionable capabilities. “

As oil demand is recovering as air travel and road traffic recover, the CBA has raised tensions between Russia and Ukraine as Brent maintains a short-term range of $ 90 to $ 100 per barrel. If so, we expect it to exceed $ 100 “very easily”.

Canada’s Prime Minister’s Office, Justin Trudeau, said US President Joe Biden will call on Friday with the leaders of Canada, France, Germany, Italy, Poland, Romania, the United Kingdom, the European Union and NATO on the Ukraine crisis. ..Read the full text

(Report by Sonali Paul, edited by Gerry Doyle)

https://www.oedigital.com/news/494428-oil-prices-retreat-on-prospect-of-iran-oil-sanctions-easing Oil prices recede in Iran’s oil outlook

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