Is a price surge possible?

Is a price surge possible?
Is a price surge possible?

The tragedy that led to the death of the Iranian president, and the current institutional uncertainty reigning in the country, could have an impact on the oil markets.

On May 19, we learned the death of Ebrahim Raïssi, the president of Iran at the time. The latter suffered a helicopter crash and plunged the country into a period of institutional floating which could have consequences on oil markets. And consequently on fuel prices in France.

Oil markets that are evolving!

The tragic death of the Iranian president has multiple consequences affecting several areas different. This is the case for oil markets. Analysts have thus followed the evolution of these markets since the drama.
They all noticed an evolution prices in recent days. The barrel of Brent increased slightly to reach $84.2. At the same time, crude oil rose to $80.1 the barrel. This corresponds to an increase of almost 1%.
Consequences that could last for the long term. Indeed, analysts have fears regarding the political situation in Iran and the state of the offer of crude.
Because it must be remembered that Iran is an oil producing country. This means that decisions made in this country may have an impact on the price of barrels and therefore on fuel prices In France. The last report of OPEC announced production daily over 3 million barrels oil in Iran.
An OPEC+ meeting, organization of oil exporting countrieswill take place next June 1st in order to decide on the course to be continued.

Prices about to skyrocket?

How the death of the Iranian president could impact fuel prices in France? Because the situation is already fragile in the Middle East region. The situation from Iran could come even more weaken this part of the world, which could make increase oil prices for compensate for.
Additionally, Iran supports Yemen’s Houthis. As a reminder, these completely block international commerce. For this, they do not hesitate to attack all ships crossing the Red Sea.
Nevertheless, some specialists think that this situation is nothing to change. This is the case of Georges Malbrunot, Middle East specialist and senior reporter for Le Figaro: “The president is in charge of implementing the policy decided elsewhere: by the supreme guide and by the Guardians of the Revolution who are all-powerful. He is only the implementer of this policy.”
For his part, Pascal Boniface, founding director of IRIS, explained: “Once again, men matter, but diets are more important than men.”

All that’s left is to wait and to observe the evolution of barrel prices. As a reminder, it takes approximately two weeks before an increase is felt in fuel prices.

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