Oil prices fell slightly on Tuesday, consolidating the week’s gains, with global supply appearing undisturbed by the geopolitical risk coming from the Middle East and Europe, to which the market nevertheless remains attentive. Around 10:00 GMT (12:00 p.m. in Paris), the price of a barrel of Brent from the North Sea, for delivery in August, lost 0.45% to 85.62 dollars. Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery the same month, lost 0.45% to 81.26 dollars.
Although the two global oil benchmarks are catching their breath, they are still moving close to their highest levels since the end of April. “Persistent geopolitical risk factors continue to disrupt the global oil market”comments Claudio Galimberti, analyst at Rystad Energy. “Risk premiums linked to Russia and the Middle East remain significant despite efforts to achieve a lasting ceasefire”he continues.
Israel shells the Gaza Strip on Tuesday as its Prime Minister Benjamin Netanyahu speaks of the end of the phase “intense” fighting with Palestinian Hamas, and where fears of a “new escalation” with the Lebanese Hezbollah are growing. The exchanges of fire in recent months between the Israeli army and the Lebanese Hezbollah, an Islamist movement allied with Hamas, armed and financed by Iran, have led to the displacement of tens of thousands of inhabitants of the border areas of southern Lebanon and from northern Israel.
The Yemeni Houthi rebels are also increasing their raids against the merchant navy. The Houthis have been carrying out attacks off the coast of Yemen for months against ships which, according to them, serve Israel, saying they are acting in support of the Gaza Strip being bombarded by the Israeli army. Despite the geopolitical risk, “oil markets have so far been spared the fallout from the Gaza invasion”recalls John Evans, analyst at PVM Energy, thus preventing a surge in prices.
In Europe, Ukraine, faced with a Russian offensive for more than two years, regularly responds by attacking Russian regions and particularly targeting energy sites.
Read alsoOil on the rise, between geopolitical risk and hope of better demand
Furthermore, the European Union officially launched Tuesday in Luxembourg with Ukraine on the one hand, and Moldova on the other, negotiations intended to allow these two countries to one day be full members of the EU. At the same time, investors are awaiting a series of economic indicators in the United States concerning consumer confidence in June, or even, on Friday, household income and spending and PCE inflation in May.
