Oil Prices Are Falling on Global Markets: Key Factors
16 July 15:12
Oil prices are falling modestly on Thursday, July 16, following gains over the previous three trading sessions. This is reported by "Komersant Ukrainian", citing “Interfax-Ukraine.”
September Brent futures on the London-based ICE Futures exchange are trading at $84.49 per barrel, down $0.46 (0.54%) from the previous session’s close. On Wednesday, they rose by $0.22 (0.26%) to $84.95 per barrel.
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WTI crude oil futures for August delivery on the New York Mercantile Exchange (NYMEX) electronic trading platform have fallen by $0.26 (0.33%) so far today, to $79.34 per barrel. At the close of the previous session, their price had risen by $0.26 (0.33%) to $79.6 per barrel.
The U.S. military launched another wave of strikes against Iran, according to the U.S. Central Command (CENTCOM). The military attacked Iranian command centers, air defense facilities, missile and drone launchers, as well as coast guard facilities, according to the statement.
In addition, the U.S. fired missiles at the unloaded tanker M/T Belma, flying the Curaçao flag, which was heading toward the Iranian island of Khark in the Persian Gulf. According to the command, the commercial vessel ignored numerous warnings while attempting to breach the U.S. blockade.
For its part, Iran’s Islamic Revolutionary Guard Corps (IRGC) launched strikes against the Ali Al-Salem Air Base in Kuwait, which is operated by the U.S. According to an IRGC statement, the strike was a combined operation involving both ballistic missiles and drones.
“Geopolitical risks continue to support oil prices, but traders have adopted a wait-and-see stance following a strong rally,” noted Priyanka Sachdeva, senior analyst at Phillip Nova. “Market participants’ attention has shifted to the actual impact on oil supplies and the measures the U.S. and Iran will take in the coming days.”
Goldman Sachs analysts believe that the price of Brent could exceed $110 per barrel in the fourth quarter if the resumption of fuel exports from the Persian Gulf region comes to a halt. If tensions ease and earnings growth is stronger than expected, the North Sea benchmark could fall below $70 per barrel, according to the bank’s experts.
Meanwhile, it was reported yesterday that U.S. crude oil inventories fell by 1.693 million barrels last week. Commercial gasoline inventories fell by 1.533 million barrels, while distillate inventories rose by 4.556 million barrels. Analysts had forecast, on average, a decline in crude oil inventories of 2.6 million barrels and in gasoline inventories of 800,000 barrels, while expecting distillate inventories to rise by 100,000 barrels.
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