Oil prices are declining despite continuing geopolitical risks and the supply crisis

VIENNA – Crude oil prices fell in early trading, Monday, despite continuing geopolitical risks in the Middle East, especially between Israel and Iran, in addition to the global supply crisis.

Last week, expectations rose of increased tensions between Iran and Israel following Tel Aviv’s launch, early this April, of a raid on part of the Iranian embassy complex in Damascus and leveling it to the ground, killing at least 12 people, most notably the commander of Iranian military operations. In Syria and Lebanon, Mohammad Reza Zahedi.

Iran is one of the world’s largest oil producers, with an average daily production exceeding 3 million barrels, while production under normal conditions reaches 3.9 million barrels per day.

In early trading on Monday, futures prices for Brent crude for June delivery fell by 1 percent, or 85 cents, to $90.2 per barrel.

Also, oil markets are witnessing a fluctuation in supply, following Mexico announced a reduction in its exports to meet domestic demand for fuel, which led to confusion in the Americas.

Previously, Bloomberg announced tanker tracking data that Mexico, the United States, Qatar, and Iraq collectively reduced their oil flows by more than one million barrels per day last March.

Baghdad pledged to limit production to compensate for non-compliance with its previous pledges to the Organization of the Petroleum Exporting Countries and its allies, known as “OPEC+.”

Although prices fell slightly, analysts in the global oil market expect crude prices to rise near $100 per barrel later this year.

Anatolia