Rogalski: Oil is cheaper after reports of the planned release of reserves by the G7 countries

Oil is falling on global markets following reports of plans to release some of the reserves by the G7 countries. The market also expects negotiations that will end military operations in the Persian Gulf and the blockade of the Strait of Hormuz – said Marek Rogalski, chief analyst of DM BOŚ, in his afternoon comment on Monday.

“Futures for WTI crude oil are fluctuating below $100, compared to nearly $120 in the morning. The correction was supported by reports of plans to release part of strategic reserves by the G7 countries, which would stabilize the markets for a few days and shift the pressure to end the conflict,” Rogalski pointed out.

The chief analyst of DM BOŚ also drew attention to reports about France's possible involvement in the “unblocking” of the Strait of Hormuz, but in his opinion, they have no major impact on the level of oil prices.

“The key will therefore be any rumors/speculations regarding the end of the war with Iran. Today, Donald Trump admitted that it will be a joint decision of the US and Israel,” the expert noted.

On Monday, around 6:30 p.m., the price of WTI (West Texas Intermediate) crude oil was less than $95 per barrel. Since Israel and the United States launched attacks on Iran, the price of oil around the world has skyrocketed. Before the outbreak of the conflict, a barrel of WTI crude oil was priced at approximately $65. On Monday morning, the price reached $119.

Since February 28, Israel and the US have been conducting airstrikes on Iran. In the first phase of the attacks, among others, died. the country's supreme leader, Ayatollah Ali Khamenei. In response, Iran is shelling Israel and other Middle Eastern countries, hitting American military bases in the region as well as civilian infrastructure. (PAP)

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