Brent crude oil prices stabilized on Wednesday at around $88 per barrel despite reports of falling US oil stocks and the announcement of a new round of sanctions against Iran, UNN reports citing Reuters.
Details
Oil prices fluctuated between rising and falling at the beginning of the week due to doubts about new sanctions against Iranian oil, as well as data on oil reserves in the United States, but stabilized at around $88 on Wednesday.
According to Goldman Sachs analysts, the expected de-escalation between Iran and Israel in the future could take another $5-10 per barrel. Taking into account the "high premium for geopolitical risk" in the coming months, the maximum price for Brent has been set at $90 per barrel, Reuters reports.
Context
On Tuesday, the United States announced a new round of sanctions against Iran, targeting "two companies and four individuals involved in malicious cyberattacks" that were carried out "against U.S. companies and government agencies.
On Thursday, the United States, in coordination with the United Kingdom, was the first to tighten its sanctions against Iran after last weekend's attack on Israel, targeting "Iran's drone program, steel industry, and car manufacturers.
Business activity in the US cooled to a four-month low in April, with S&P Global announcing on Tuesday that its Output PMI, a composite index tracking the manufacturing and services sectors, fell to 50.9 this month from over 52 in March.
The world's largest economy now falls into the category of "bad news is good news
Recall
Russian oil and gas revenues to double despite sanctions - Reuters
UNN also reported that the Rada supported the classification of oil and gas condensate as excisable goods.