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Brent crude oil prices on Friday, 20 June, cut back on the previous session’s gains and fell by almost $2 after the White House postponed a decision on the US’s possible involvement in the Israeli-Iranian conflict. At the same time, oil has been showing positive dynamics for the third week in a row, Reuters reports.
Thus, Brent crude oil futures fell by $1.89 (2.4%) to $76.96 per barrel. Over the week, they rose by 3.8%.
US WTI for July delivery rose 53 cents (0.7%) to $75.67 per barrel. WTI contracts for August delivery rose 17 cents (0.2%) to $73.67.
On Thursday, quotes soared by almost 3% after reports of Israeli bombing of Iranian nuclear facilities in response to Iran’s missile attack on an Israeli hospital. The war between Israel and Iran has been going on for a week with no signs of de-escalation.
Brent’s decline followed a statement from the White House: President Donald Trump will decide on the possibility of US intervention in the conflict over the next two weeks.
“Oil prices have risen sharply amid fears of increased US involvement. However, a statement from the White House press secretary made it clear that there is still time for diplomacy,” commented Phil Flynn, analyst at The Price Futures Group.
Iran is the third largest OPEC member in terms of production, supplying about 3.3 million barrels of crude oil per day.
Between 18 million and 21 million barrels of oil and oil products pass through the Strait of Hormuz, which is adjacent to Iran’s southern coast, every day. Any disruption in the region could seriously affect global supplies.
Analysts note that the “two-week deadline” announced by Trump is a typical tactic that often ends without immediate action, which can keep oil prices elevated.
