Crude oil prices set to end April flat amid easing Middle East tensions
Also Read: Oil prices decline amid Israel-Hamas peace negotiations, Fed rate cut hopes As of now, Brent crude futures have seen a modest increase of 0.26% in April, while WTI crude futures have experienced a slight decline of 0.55%. Crude prices surged sharply in mid-April, reaching their highest level since October, driven by Iran's unprecedented attack on Israel in retaliation. This was seen as a response to a suspected Israeli strike on the Iranian Consulate in Damascus, Syria, earlier in the month.
In response, Israel reportedly targeted three Iranian cities, although the damage was limited. Market tensions have eased off subsequently, as there was no immediate hit to oil production and as attacks between the two countries appeared to have eased off. Furthermore, major Middle Eastern countries refrained from escalating the conflict, leading to narrow trading in crude oil prices.
Initially, analysts anticipated a strong Israeli retaliation against Iran. However, the United States and the European Union intervened by calming Israel by announcing a series of sanctions, including Iran's oil sector. Also Read: India's oil imports from Russia drops in Feb, Saudi Arabia 2nd largest supplier Further, recent media reports indicate that Russia continues to flood the markets with its cheaper oil, maintaining multi-month high exports of seaborne crude.
India and China remain the primary customers for Russian crude. On the demand side, global economic uncertainties and concerns about prolonged higher interest rates by the US Federal Reserve have contributed to dampened crude oil prices this month. Additionally, high US crude inventories have further subdued prices.
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