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Oil rates most likely to fall after Israel shows restraint in strikes on Iran

Oil rates are anticipated to fall when trading resumes on Monday as Israel's. vindictive strike on Iran over the weekend bypassed Tehran's. oil and nuclear infrastructure and did not interfere with energy. products, experts said.

Brent and U.S. West Texas Intermediate crude futures. gotten 4% last week in unpredictable trade as market value. in uncertainty around the degree of Israel's response to the. Iranian missile attack on Oct. 1 and the U.S. election next. month.

Ratings of Israeli jets finished 3 waves of strikes. before dawn on Saturday versus missile factories and other. sites near Tehran and in western Iran, in the latest exchange in. the intensifying dispute in between the Middle East rivals.

The market can breathe a huge sigh of relief; the understood. unidentified that was Israel's ultimate action to Iran has been. resolved, Harry Tchilinguirian, group head of research study at Onyx. said on LinkedIn.

Israel attacked after the departure of U.S. Secretary of. State Antony Blinken, and the U.S. administration could not have. expected a better outcome with U.S. elections less than 2. weeks away.

Iran on Saturday played down Israel's over night air attack. against Iranian military targets, saying it triggered just limited. damage.

Israel's not assaulting oil infrastructure, and reports that. Iran will not react to the strike get rid of an element of. uncertainty, Tony Sycamore, IG market expert in Sydney, stated.

It's most likely we see a 'buy the rumour, offer the reality'. type response when the crude oil futures markets reopen. tomorrow, he stated, adding that WTI might go back to $70 a barrel. level.

Tchilinguirian expects geopolitical danger premium that had. been developed into oil prices to deflate rapidly with Brent heading. back towards $74-$ 75 a barrel.

UBS commodity expert Giovanni Staunovo also expects oil. prices to be depressed on Monday as Israel's action to Iran's. attack appeared to have been limited.

However I would anticipate such downside response to be only. short-term, as I think the market didn't price a big threat. premium, he added.

(source: Reuters)