Background on Key Figures and Organizations
Oil prices were rising on Friday, but they were headed for their biggest weekly drop in two years as the absence of a significant supply disruption from the conflict between Iran and Israel eliminated any risk premium.
Key Players
- Oil Prices: The prices of crude oil were increasing, with Brent futures rising 17 cents (0.25%) to $67.9 per barrel by 5:21 a.m. CDMX time, while West Texas Intermediate (WTI) gained 16 cents (0.25%) to $65.4 per barrel.
- Conflict: Iran vs. Israel: The 12-day war started after Israel attacked Iran’s nuclear facilities on June 13. The prices of Brent briefly surged above $80 per barrel before falling to $67 after US President Donald Trump announced a ceasefire between Iran and Israel.
- Analyst: Janiv Shah (Rystad): He stated, “The market has almost completely moved away from the geopolitical risk premium of nearly a week ago as we return to a fundamentals-driven market.”
Weekly Price Trends and Market Dynamics
During the 12-day war, oil prices initially rose briefly above $80 per barrel due to geopolitical risk concerns. However, the sharp decline following the ceasefire announcement put both contracts on track for a weekly drop of around 12%.
OPEC+ Meeting
Members of OPEC+ will convene on July 6 to decide August production levels.
Key Questions and Answers
- Q: Why are oil prices falling despite the recent conflict between Iran and Israel? A: The absence of significant supply disruptions from the conflict led to the elimination of any risk premium, causing oil prices to fall.
- Q: How much are oil prices expected to drop this week? A: Oil prices are on track for a weekly decline of approximately 12%.
- Q: Who are the key figures mentioned in this article? A: The key figures include US President Donald Trump and Janiv Shah, an analyst from Rystad.
- Q: When will OPEC+ members meet to discuss production levels? A: OPEC+ members will convene on July 6 to decide August production levels.
