Apr 22, 2024 (MENAFN via COMTEX) --
(MENAFN) Oil prices experienced a decline during the opening of Asian trading on Monday, with market sentiment shifting towards a renewed focus on underlying market fundamentals. This shift followed developments in the Middle East, where Israel and Iran reportedly reduced the likelihood of an escalation of hostilities. The diminished geopolitical tensions contributed to a downward pressure on oil prices, as investors reassessed the immediate risks in the region.
Brent crude futures fell by 54 cents, representing a decrease of 0.6 percent, to reach USD86.75 per barrel by 1218 GMT. Meanwhile, the May contract for US West Texas Intermediate (WTI) crude, set to expire on Monday, saw a modest decline of 12 cents to USD83.02 a barrel. The most actively traded June contract for WTI also experienced a decrease, dropping by 47 cents, or 0.6 percent, to USD81.75 a barrel.
Market analysts highlighted several factors contributing to the downward pressure on oil prices. Tina Ting, an independent market analyst, cited economic concerns as a bearish factor, noting a significant increase in US inventories and the Federal Reserve's policy of monetary tightening, which has led to a strengthening of the dollar. These factors have collectively weighed on crude oil prices, tempering investor sentiment and contributing to the recent decline.
Last week, both Brent crude and WTI crude experienced their largest weekly losses since February, following reports of a supposed Israeli air strike on Iranian territory. However, oil prices initially surged by more than USD3 per barrel in response to the news before retreating as Iran downplayed the reports and indicated a lack of intention to retaliate. This reversal in sentiment further contributed to the downward trajectory of oil prices, highlighting the inherent volatility and sensitivity of the market to geopolitical developments.
As investors continue to monitor developments in the Middle East and assess the broader economic landscape, oil prices are likely to remain subject to fluctuations driven by shifting geopolitical dynamics, supply and demand fundamentals, and macroeconomic trends.
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COMTEX_451249326/2604/2024-04-22T18:34:44
