Calm trend in oil
Oil prices calmed down after a weekly gain as geopolitical risks in Russia and the Middle East came to the fore again following the weekend attacks.
Brent futures were trading around $84 a barrel after posting their first weekly gain this month, while U.S. crude oil was below $80. Ukraine continued its drone attacks on Russia’s refineries on Sunday, while an oil tanker heading to China was hit by a Houthi missile in the Red Sea on Saturday.
State television in Iran reported that there were “no signs of life” at the crash site of the helicopter carrying Iranian President Ibrahim Raisi. Supreme Leader Ayatollah Ali Khamenei said that “there will be no disruption in the country’s affairs” as a result of the incident.
Warren Patterson, Head of Commodity Strategy at ING Group in Singapore, said: “The market has become increasingly insensitive to geopolitical developments and OPEC’s large reserve production is likely to contribute to this. To move out of this range, OPEC+ needs greater clarity on its production policy.” “We may have to wait for him to win,” he said.
Global benchmark Brent is around 9 percent higher this year due to OPEC+ supply cuts, but prices have fallen since mid-April as geopolitical tensions ease. Market observers are turning their attention to the producer group’s meeting on June 1, but largely expect the current restrictions to be lifted.