Oil prices continue to rise on global markets: the main reasons
12 May 09:35
Oil prices continued to rise on Tuesday, May 12, amid fears of a new escalation of the conflict in the Middle East due to the lack of progress in negotiations between the U.S. and Iran. This was reported by "Komersant Ukrainian", citing Interfax-Ukraine.
U.S. President Donald Trump is growing increasingly frustrated with how Iran is conducting negotiations and has in recent days been more seriously considering the possibility of resuming major military operations against it, CNN reports, citing informed sources. Trump told reporters on Monday that he was not satisfied with the proposals for resolving the conflict submitted by Iran, and that he had not even finished reading them. He emphasized that the ceasefire with Iran is in an extremely precarious state.
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The price of July Brent crude futures on the London ICE Futures exchange, as of 8:20 a.m. local time, stands at $104.91 per barrel, which is $0.7 (0.67%) higher than at the close of the previous trading session. On Monday, these contracts rose by $2.92 (2.88%) to $104.21 per barrel.
WTI crude oil futures for June delivery on the New York Mercantile Exchange (NYMEX) have risen by $0.88 (0.9%) to $98.95 per barrel as of this time. At the close of the previous session, their price had risen by $2.65 (2.78%) to $98.07 per barrel.
“Optimism regarding a quick deal is waning, and if we do not see a possibility of a deal by the end of May, the risk of further oil price increases certainly remains relevant,” notes Suvro Sarkar, head of the energy sector analyst team at DBS Bank.
As a reminder, electric vehicle production, particularly in China, could be threatened in the medium term due to a sulfur shortage caused by the blockage of the Strait of Hormuz as a result of the war in the Middle East.
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