Oil prices have expanded slightly from their strong premiums from last week.
A barrel (159 liters) of North Sea Brent for delivery in April cost $72.21 on Monday. That was 46 cents more than on Friday. The price of US West Texas Intermediate (WTI) oil rose 55 cents to $67.02.
At the beginning of the week, investors mainly focused on the conflict between Iran and the USA. They are currently weighing the chances of a nuclear deal between the two countries after Iran’s Foreign Minister Abbas Araghchi promised another round of negotiations with the United States in a few days. He expressed confidence that a better deal than the 2015 Vienna nuclear agreement was possible.
If an agreement is reached, Iran could export more oil, which would increase supply on the world market and reduce the price of oil accordingly. However, the conflict could also escalate because, according to media reports, US President Donald Trump is considering a limited military strike in Iran in order to increase pressure on the other side.
Meanwhile, investors are also monitoring the latest developments in the US customs dispute with the rest of the world. After the US Supreme Court’s decision against parts of President Donald Trump’s customs policy announced on Friday, the US Supreme Court stepped up. The Republican announced on Saturday on the Truth Social platform a global tariff on imports to the USA of 15 percent – instead of the 10 percent that was already estimated shortly before.
This could again raise concerns about a global economic slowdown and thus dampen demand for crude oil. This would put pressure on oil prices.
The major bank Goldman Sachs has raised its oil price forecasts, citing lower inventory build-up in industrialized countries. However, the bank continues to expect prices to fall compared to current levels, with Brent expected to be at $60 by the end of the year. However, a combination of sanctions and supply shortages is likely to last longer than previously assumed. Morgan Stanley also said on Monday that Brent should trend back toward $60 over time. “Oil is rallying on risk, not scarcity,” the bank said.
NEW YORK/LONDON (dpa-AFX)