Global oil prices dip amid US–Iran crisis
Photo: Oil prices fell on February 10 (Getty Images)
Global oil prices fell as traders assessed the potential for supply disruptions amid the crisis between the US and Iran, Reuters reports.
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Brent crude futures fell 24 cents, or 0.35%, to $68.80 per barrel. The price of US West Texas Intermediate crude fell 30 cents, or 0.47%, to $64.06.
"The market is still focused on the tensions between Iran and the US. But unless there are concrete signs of supply disruptions, prices will likely start going lower," says Tamas Varga, oil analyst at brokerage PVM.
According to analysts, oil prices rose over 1% on Monday after the US Department of Transportation's Maritime Administration advised commercial vessels flying the US flag to stay as far away as possible from Iranian territorial waters.
About a fifth of the oil consumed worldwide passes through the Strait of Hormuz between Oman and Iran, making any escalation in the area a serious threat to global oil supplies.
Iran and other OPEC members, including Saudi Arabia, the United Arab Emirates, Kuwait, and Iraq, export most of their crude oil through this strait, mainly to Asia.
Goldman Sachs analysts note that prices are being supported by geopolitics, with oil prices rising on ships as buyers seek to secure more oil amid heightened uncertainty.
On February 9, global oil prices stabilized amid reports that the US and Iran had promised to continue indirect talks.
