Global oil prices continue to fall on June 17 following the peace deal between the US and Iran, but risks to the market remain, particularly due to Israelʼs position.
Reuters reports this.
Brent crude oil prices fell 0.87% to $78.27 per barrel, while US WTI lost 1.08% of its value and is trading at $75.23 per barrel. The day before, both benchmarks lost about 5% of their value for the second time in a row and fell to their lowest prices in three months.
The market expects that the agreements between Washington and Tehran will allow the resumption of oil supplies through the Strait of Hormuz. A US official told Reuters that after the signing of the peace agreement, Tehran will again be able to sell oil on international markets.
Despite the agreement, industry insiders believe it could take weeks, months or even years for the market to return to pre-war levels. Adding to the uncertainty is Israel’s stance, which has distanced itself from both the April ceasefire and the new US-Iran deal.
The market is also being weighed down by weakening demand. In May, Chinaʼs oil refining volumes fell 9.1% year-on-year, falling to their lowest level in nearly four years.
Meanwhile, US crude oil inventories fell by 8.3 million barrels in the week, much more than analysts had expected, who had forecast a decline of 4.6 million barrels.
- On the night of June 15, the US and Iran agreed to a peace agreement. Both sides announced that they would cease fire on all fronts, including Lebanon. However, the Israeli media outlet Ynet, citing sources, wrote that Israel would continue operations in Lebanon against Hezbollah terrorists, despite the US-Iran peace agreement.
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