Oil is stable in price amid the death of the Iranian president and reports on the health of the Saudi king
Kyiv • UNN
Iran's President Raisi died in a plane crash, Saudi Arabia's crown prince postponed his visit to Japan due to the king's health, and oil prices remained stable amid political uncertainty in major producing countries.
Oil prices remained stable on Monday amid political uncertainty in major producing countries after Iran's president died in a helicopter crash and Saudi Arabia's crown prince postponed a trip to Japan due to the health of his father, the king, UNN reports citing Reuters.
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At 12:05 GMT (15:05 Kyiv time), Brent crude fell 35 cents to $83.63 per barrel. The June contract for U.S. West Texas Intermediate (WTI) fell 43 cents to $79.63 per barrel. The more active July contract fell 38 cents to $79.2.
Iranian President Ibrahim Raisi, a hardliner long considered a potential successor to Supreme Leader Ayatollah Ali Khamenei, died in a helicopter crash in a mountainous area near the border with Azerbaijan, officials and state media reported Monday. The sudden death of the Iranian president should not affect Iran's oil policy, as Khamenei is the highest authority and has the final say on all state issues, the newspaper points out.
Iran officially announces the death of President RaisiMay 20 2024, 05:59 AM • 20928 views
In addition, Saudi Arabia's Crown Prince Mohammed bin Salman postponed his visit to Japan, which was scheduled to begin on Monday due to health problems with his father, King Salman, Chief Cabinet Secretary Yoshimasa Hayashi said.
Saul Kavonik, energy analyst at MST Marquee, said that the market has become accustomed to the leadership of Crown Prince Mohammed bin Salman in the energy sector.
"Regardless of this health issue, the Saudi strategy is expected to continue," he said.
Meanwhile, another Russian energy facility was reportedly hit. The Slavyansk oil refinery, located in the Krasnodar region, was hit by a drone attack over the weekend, state-run Russian media reported on Monday, citing a company security official.
"From here on out, we expect overall market fundamentals to improve and see similar inventory drawdowns and price movements as last summer, with Brent rising $10 above current levels by September," JPMorgan analysts wrote in a note late Sunday night.
The Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, are scheduled to meet on June 1.
"The market also seems increasingly immune to developments on the geopolitical front, likely due to the large amount of spare capacity OPEC is sitting on," said Warren Patterson, head of commodity strategy at ING.
