Oil prices are falling again: key factors
16 January 10:09
Oil prices retreated slightly on Friday, January 16, extending losses from the previous session as concerns about potential supply disruptions eased along with the likelihood of US military action against Iran.
This was reported by [Komersant] with reference to Reuters.
By 8:00 a.m. Kyiv time, Brent crude futures had fallen 0.38% to $63.52 per barrel, while WTI futures had fallen 0.32% to $59 per barrel.
According to BMI analysts, Brent lost its previous gains, although it is still trading at a higher price than last week. Pressure on prices was intensified by yesterday’s statement by US President Donald Trump that he may refrain from striking Iran.
“Given the political instability in Iran, market volatility will continue as participants assess the risks of supply disruptions,” BMI said in a note.
The outlook remains bearish: analysts still expect a supply surplus this year, despite OPEC’s assessment that the market will be balanced.
“The market is driven by sentiment, but the impact of news is short-lived, especially when fundamentals look stable,” said Priyanka Sachdeva of Phillip Nova.
