Oil slips from recent highs as market ponders Middle East tensions
Oil prices fell on Thursday after sharp gains in the previous session as market participants assessed a U.S. decision to move personnel from the Middle East ahead of talks with Iran over that country’s nuclear-related activity.
Brent crude futures were down $1.02, or 1.5%, at $68.75 a barrel at 1253 GMT, while U.S. West Texas Intermediate crude fell $1.05, or 1.5%, to $67.10 a barrel.
Both Brent and WTI surged more than 4% in the previous session to their highest levels since early April.
U.S. President Donald Trump said the U.S. was moving personnel because the Middle East "could be a dangerous place". He also said the U.S. would not allow Iran to have a nuclear weapon. Tehran has said its nuclear activity is for peaceful purposes.
Increased tension with Iran has raised the prospect of disruption to oil supplies. The sides are set to meet on Sunday.
"Geopolitical risk premia tend to fade if there are no supply disruptions. We are still higher than two days ago as some short investors prefer to stay on the sidelines amid the uncertainty," said Giovanni Staunovo, an analyst at UBS.
On Wednesday, Britain’s maritime agency warned that increased tensions in the Middle East may lead to an escalation in military activity that could impact shipping in critical waterways.
It advised vessels to use caution while travelling through the Gulf, the Gulf of Oman and the Strait of Hormuz, which all border Iran.
Source : Reuters
