Oil prices rise amid investor concerns about the stability of the ceasefire between Iran and Israel.
However, despite the slight growth, quotes remain close to multi-week lows – markets are not registering any immediate risks to global oil supplies.
Reuters reports this.
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Dynamics of oil prices
Brent crude rose 85 cents to $67.99 a barrel. U.S. WTI crude rose 87 cents to $65.24 a barrel. That's about a 1.3-1.4% gain on the day.
Yesterday, both grades of oil fell to their lowest levels in weeks, with Brent hitting its lowest since June 10 and WTI its lowest since June 5. That was before Israel's June 13 attack on Iranian military and nuclear facilities.
Prices jumped to five-month highs after the US strikes on Iran's nuclear facilities, but quickly fell back due to the ceasefire.
Analysts at JP Morgan bank note that world energy prices are falling following the ceasefire between Iran and Israel.
Experts believe that for now, global oil reserves are sufficient for a stable market.
US intelligence has preliminarily assessed that the US strikes did not destroy Iran's nuclear program, but only delayed it by several months.
The ceasefire was brokered by President Donald Trump, but it remains fragile.
The main concern for investors is the Strait of Hormuz between Iran and Oman.
The narrow waterway carries 18-19 million barrels of oil and fuel every day – nearly a fifth of the world's consumption.
Capital Economics' David Oxley predicts the truce will remain fragile.
But as long as the parties do not attack energy infrastructure or block shipping through the Strait of Hormuz, the situation on the oil market will remain relatively stable.
U.S. crude oil inventories fell by 4.23 million barrels last week, according to the American Petroleum Institute.
Let us recall that Iran threatens to close the Strait of Hormuz after the US strikes on the country's nuclear facilities.
However, the US warned that such a move would also affect Iran's allies and would be suicidal for the country itself.
