Brent futures were trading at $71.04 per barrel, up 19 cents, or 0.3%. WTI futures rose 15 cents, or 0.2%, to $65.57 per barrel. While Brent and WTI settled largely unchanged on Wednesday, Brent on Monday rose to its highest since July 31 as Washington positioned military forces in the Middle East to press Iran to negotiate an end to its nuclear and ballistic missile programme.
“Investors are focusing on whether military conflict will be averted in the US-Iran negotiations,” said Toshitaka Tazawa, an Analyst at Fujitomi Securities.
Even if hostilities were to break out, provided the targets were limited and the conflict short-lived, WTI would likely rise temporarily to above $70 a barrel before retreating to the $60–$65 range, he said. An extended conflict could disrupt supplies from Iran, the third-biggest crude producer in the Organisation of the Petroleum Exporting Countries, and other Middle East exporters.
–Reuters–
