OIL prices on Monday maintained muted reaction to mounting tensions between Iran and the West, moving modestly higher after Tehran’s announcement that it had seized a British-flagged oil tanker Friday.

West Texas Intermediate futures rose one per cent to $56.32 a barrel on the New York Mercantile Exchange. Brent crude, the global benchmark, was up 1.5 per cent at $63.39 a barrel on London’s ICE Futures exchange, after earlier getting as high as $64.03.

Iranian forces on Friday captured a British-flagged tanker in the Persian Gulf, a move widely seen as retaliation for the U.K.’s seizure of an Iranian vessel off Gibraltar two weeks earlier. On Saturday, the U.K.-flagged tanker Stena Impero arrived in the Iranian port of Bandar Abbas with its 23 crew members still on board.

Iran’s Revolutionary Guard has released footage showing some of its forces boarding the British tanker Stena Impero in the Strait of Hormuz.

Read Also: NNPC to supply 10 per cent of India’s crude oil

Though tanker day rates have surged amid the hostilities around the world’s busiest oil-shipping route, crude prices are not reflecting the geopolitical drama that is playing out, analysts say.

“Passing through the Strait of Hormuz involves considerable risks for international oil tankers, which in our opinion justifies a considerably higher risk premium on the oil price than is currently the case,” said Carsten Fritsch, an analyst with Commerzbank AG .

Even after oil’s move higher yesterday, prices are down about five per cent over the past week. U.S. data showing a smaller-than-expected fall in oil stockpiles had a greater effect on the market than turmoil in the Middle East.

The unexpected dissipation of Hurricane Barry last week also relieved pressure on oil prices, as supply disruptions were avoided. The Bureau of Safety and Environmental Enforcement said Saturday that workers had returned to nearly all of the manned platforms in the Gulf of Mexico and that only about three per centof offshore oil production remained shut-in.

You may be interested

Three held over death of Dowen College student
News
12 views
News
12 views

Three held over death of Dowen College student

Webby - December 7, 2021

The Lagos State Police Command on Tuesday confirmed that three of the students who were allegedly involved in the death…

Simy, Obi Risk Exclusion From Serie A With Salernitana
Sports
3 views
Sports
3 views

Simy, Obi Risk Exclusion From Serie A With Salernitana

Webby - December 7, 2021

Salernitana the club of Nigerian duo Simy Nwankwo and Joel Obi, on Tuesday met with the Italian Football Association  (FIGC),…

Taye Taiwo Joins Finnish Club Palloilijat
Sports
4 views
Sports
4 views

Taye Taiwo Joins Finnish Club Palloilijat

Webby - December 7, 2021

Former Super Eagles defender Taye Taiwo has linked up with Finnish third division club Palloilijat on a one-year contract, reports…

Leave a Comment

Your email address will not be published.