The price of a barrel of West Texas Intermediate crude oil for June delivery increased by 0.88% on Tuesday on the NYMEX in New York. — up to $98.93 In turn, Brent crude oil is valued at $104.88. per barrel, which means an increase of 0.64 percent, after an earlier increase of 2.9 percent on Monday. Oil prices have been steadily rising since U.S. President Donald Trump suggested he was close to breaking the ceasefire with Iran, calling Iran's proposal for an agreement “unacceptable.” At the same time, he said he intended to conduct further negotiations.
See also: The price of oil rises after Trump's words. Wall Street is not looking to the Middle East
Analysts: the risk of rising oil prices is on the table
Donald Trump said the truce is “incredibly weak”, comparing his condition to a patient on artificial life support whose doctor gives him 1%. chances of survival. He assessed that the response to his proposal sent by Iran on Sunday was “stupid” and so bad that he did not even read it to the end.
New tensions between the US and Iran indicate that the Strait of Hormuz will probably not be opened in the near future, which means a blockage of supplies, among others. crude oil and natural gas, and as a result – further price increases.
In the opinion of Bloomberg Intelligence analysts, recent events indicate that an agreement between the US and Iran is unlikely. They even suggest that attacks may resume, although these may be less intense.
See also: More and more Americans are criticizing President Trump. The survey gives a clear signal
“It is unlikely that there will be a comprehensive peace agreement,” Bloomberg Intelligence analysts write in a market note. “However, we expect that the intense exchange of fire may be temporary and limited to lower levels of fighting, which we call the 'new normal' in this protracted conflict,” experts emphasize.
“Optimism about an upcoming deal seems to be waning again, and if we don't see an agreement by the end of May, the risk of rising oil prices is definitely on the table,” DBS Bank energy sector team leader Suvro Sarkar told Reuters.
