Oil prices decline as risk premium eases following Iran attack; brent crude at $89.64/bbl
Crude oil prices can hit $100 a barrel if Iran-Israel tensions escalate, say experts “Crude oil dipped around $85 after Israel successfully defended itself from Iran's large-scale air attack over the weekend, and the US underlined its desire to prevent a larger Middle East conflict. The Iranian strike did minimal damage in Israel.
If the crisis does not escalate to a point that creates supply disruptions, then there will be downside move over time, but only once it becomes clear Israel has chosen a measured response," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd. He further added, “We are expecting WTI crude oil will be in range of $80 to $90.
On MCX platform Rs6900 will act as major support level, only below this level, it will come in negative trend." Iran's attack comprised over 300 missiles and drones, marking the first attack on Israel by another nation in over three decades. This event has sparked concerns about a wider regional conflict that could impact oil traffic across the Middle East.
Kpler analyst Viktor Katona noted that Iran's declaration of considering its retaliation concluded has eased geopolitical tensions, while John Evans from oil broker PVM described the Iranian drone and missile strike as one of the most anticipated global events in recent memory. The attack, labeled by Iran as retaliation for an airstrike on its Damascus consulate, resulted in minimal damage, with Israel's Iron Dome defense system intercepting several missiles.
"The likelihood of an attack was largely factored into market expectations in the days leading up to it. Moreover, the limited damage and absence of casualties suggest that Israel's response may be more restrained," Warren Patterson, ING's head of commodities
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