The price of oil is slightly up on Tuesday after a sharp drop on Monday, as uncertainty remains regarding negotiations between Iran and the United States mentioned by Donald Trump to end the war in the Middle East.
Around 11:05 GMT (12:05 in Paris), the price of a barrel of Brent crude from the North Sea for delivery in May was up 1.36% at $101.30.
Its American counterpart, West Texas Intermediate, for delivery in the same month, was up 2.44% at $90.28.
Donald Trump claims his administration is in talks with an unidentified “high-ranking” official, but Iran denies this.
The President of the Iranian Parliament denied any negotiations with the United States, referring to “fake news” meant to “manipulate financial and oil markets and to get the United States and Israel out of the quagmire they are stuck in.”
“The idea that Trump can act alone and influence events does not hold if the other party refuses to cooperate,” said Ipek Ozkardeskaya, an analyst at Swissquote.
According to her, the optimism surrounding the statements of the American president may “hardly last” if Iran is not willing to defuse the conflict.
And while the market tries to make sense of possible diplomatic discussions, “there is still no prospect of the Strait of Hormuz opening in the short term, which is the most determining factor for oil prices,” said Arne Lohmann Rasmussen, an analyst at Global Risk Management.
The near-paralysis of the strait between the Gulf and the Gulf of Oman is the main factor driving up oil prices, as around 20% of the world’s production usually passes through it and much of it is impossible to reroute through other routes.
On Monday, the director of the International Energy Agency (IEA), Fatih Birol, stated that “11 million barrels” of oil are lost each day, out of a global production of just over a hundred million barrels per day.
Furthermore, as long as the conflict continues, the risk of strikes and long-term damage to energy infrastructure increases.
The American president announced a five-day extension – until the end of the trading week – to his latest ultimatum against Tehran (strikes against Iranian power plants in case the blockade of the Strait of Hormuz continues).
“But no one knows what will happen next,” Ms. Ozkardeskaya emphasized.
AFP
