Uneventful Day for Crude as Demand Concern Outweighs Geopolitics

Monday June 24, 2019

Rising tensions between the US and Iran may have driven up crude prices last week, but a new round of US sanction today failed to deliver the same kind of spike.

West Texas Intermediate rose $0.47/bbl to $57.90 Monday, while Brent dropped back $0.34 to $64.86.

Analysts suggested concern over falling demand outweighed the geopolitical concerns.

Still, Macquarie oil and gas analyst David Hewitt were among those suggesting rising tensions will eventually drive prices up further, telling CNBC that the current prices did not yet reflect the level of geopolitical risk.

Russian Energy Minister Alexander Novak, meanwhile, was looking further afield today, saying the demand uncertainty for Q3 and Q4 meant it was too early to decide on whether an extension to the current oil output deal would happen.