Oil prices have risen again due to the escalation of the conflict in the Middle East
As of Tuesday morning, May 12, Brent crude is trading at $106.40 per barrel, while WTI is trading at $100.60 per barrel.
This is reported by Trading Economics.
On Monday, May 11, Brent prices fluctuated between $103 and $105, while WTI prices ranged from $96.5 to $100 per barrel.
The rise, albeit slight, is based on the fragility of the ceasefire between the U.S. and Iran, as well as the lack of progress in peace talks.
U.S. President Donald Trump stated that the truce with Iran is “on life support” and pointed to disagreements over a number of demands in the peace talks.
“Optimism regarding an imminent (peace) agreement seems to be fading again, and if we don’t see a deal by the end of May, the risks of rising oil prices will certainly be on the agenda,” Suvro Sarkar, head of the energy sector team at DBS Bank, told Reuters.
Other analysts say that a breakthrough in reaching a peace agreement could trigger a sharp price drop of $8–12, while any escalation of the conflict or renewed threats of a blockade of the Strait of Hormuz would quickly push the price of Brent back above $115.
As a reminder, amid the escalating situation in the Middle East, the discount on Russian Urals crude began to rise for the first time in recent months. However, experts say that high oil prices will not save the Russian economy from a slowdown.
The price of Russian Urals crude at Indian ports jumped to a record $121.65 per barrel.
