Oil prices dip amid easing regional conflict fears
Oil prices fell by about a percentage point on Monday morning, following a decline in the market fears of the outbreak of a broader regional conflict, following the attack launched by Iran over the weekend on Israel, reports Al-Jarida daily.
Brent crude futures for June delivery fell 99 cents, or approximately 1.0 percent, to $89.46 per barrel, and West Texas Intermediate crude futures for May delivery fell $1.05, or 1.2 percent, to $84.61 per barrel.
Oil prices rose on Friday, with anticipation of the Iranian response to the targeting of its consulate, and touched their highest levels since October. So far, the conflict between Israel and Hamas has had little tangible impact on oil supplies.
In this context, the International Energy Agency said on Monday that the further escalation of tension in the Middle East region due to the air attacks launched by Iran on Israeli military facilities raises the risk of increased volatility in oil markets, and represents a new reminder of the importance of energy security.
The agency added, in its news bulletin, that global oil markets were already witnessing a state of scarcity even before the attacks, noting that the escalation of geopolitical tension in the Middle East is focusing attention on the security of supplies, according to the latest version of the agency’s monthly report on oil markets, quoted by the news agency.
The agency said that, as always, it will follow developments closely. She noted that Brent crude oil exceeded $90 per barrel earlier this month, reaching its highest levels since October 2023, amid escalating tensions between Israel and Iran.
In another context, the Venezuelan government arrested two high-ranking energy officials, after the arrest of a former oil minister, in light of an investigation into billions in losses in revenues from Petroleos de Venezuela
SA. Bloomberg quoted an unnamed informed source as saying that Deputy Oil Minister Eric Perez and Deputy Minister for Gas Affairs Juan Santana were arrested on Saturday.
Bloomberg said that the arrests came in the wake of the arrest of former Venezuelan Oil Minister Tarek El Aissami last Tuesday, a year after his resignation. El Aissami faces charges of treason and money laundering in connection with an alleged scheme in which billions of dollars in oil revenues were hidden.
The Deputy Prime Minister, Minister of Oil, Chairman of the Board of Directors of the Kuwait Petroleum Corporation, Dr. Imad Al-Ateeqi, on Monday, held a meeting with the leaders of the corporation and its subsidiaries, in the presence of the Undersecretary of the Ministry of Oil, during which he was briefed on the corporation’s preparations to confront all possibilities at the security level.