The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Oil fell from a three-month high in London as traders waited to see whether the clash between the US and Iran would lead to a disruption in Middle East crude supplies.
Brent futures retreated towards $68 a barrel after a two-day surge following a US airstrike that killed a top Iranian general pushed prices above $70 for the first time since September. While Iran’s semi-official Fars news agency said the Islamic Republic is assessing 13 retaliation “scenarios†against America, and the White House ordered additional forces to the Middle East, oil flows out of the region continue unimpeded for now.
The oil market has had a turbulent start to 2020 as the US attack reignites fears of conflict in the world’s most important oil producing region. Crude remains about 3% higher since the attack, but it’ll take a major disruption to output to keep prices elevated, according to Goldman Sachs Group Inc.
“While there have been no additional barrels taken offline as a result of the rising conflict between the US and Iran, the situation remains ever fluid,†said Michael Tran, commodity strategist at RBC Capital Markets LLC.
Brent crude dropped 55 cents, or 0.8%, to $68.36 a barrel on the ICE Futures Europe exchange as of 1:33 pm in London. It ended Monday just 0.5% higher after earlier rising as much as 3.1% in intraday trade. West Texas Intermediate futures lost 0.7% to $62.82 on the New York Mercantile Exchange on Tuesday.