ISLAMABAD: Crude oil prices fell on Monday following Iran’s attack on Israel at the weekend as traders speculated that the conflict would remain contained. Brent, the international benchmark for two-thirds of the world’s oil, slipped $0.69 (-0.76 percent) to reach $89.76 a barrel. Similarly, the West Texas Intermediate (WTI), the main oil benchmark for North America, went down by $0.57 (-0.67 percent) to $85.09 a barrel. On the other hand, the price of Arab Light decreased by $0.61 (-0.67 percent) to reach $90.98 a barrel. Similarly, the price of Russian Sokol decreased by $0.56 (-0.67 percent) to $82.76 a barrel. On the other hand, the price for Opec Basket increased by $0.23 (+0.25 percent) to $90.62 a barrel. Iran fired more than 300 drones and missiles at Israel on Saturday in retaliation for the killing of senior members of the Islamic Revolutionary Guard Corps in an air strike in Syria on April 1. TLTP
It marked the first direct attack by Tehran on Israel rather than through proxies in Lebanon, Syria and elsewhere. Iran also seized a container ship with links to Israel in the Arabian Sea. Saturday’s attack, while a significant escalation, caused little damage, reducing the likelihood of an Israeli response, according to some analysts.
Oil prices drifted lower, with the market downplaying the risk of broader regional conflagration after Iran’s weekend attack on Israel. Oil benchmarks had risen on Friday in anticipation of Iran’s retaliatory attack, with prices touching their highest since October.
On the other hand, Iran produces more than 3 million barrels per day (bpd) of crude oil as a major producer within the Organization of the Petroleum Exporting Countries (OPEC). Middle East hostilities centered on the Israel-Hamas conflict in Gaza have had little tangible impact on oil supply so far.
