World News
Crude Futures Slump After Limited Israeli Strikes on Iran
Crude oil futures slumped in early trading on Monday after limited Israeli strikes on Iran over the weekend -- much less severe than previously expected -- pointed to reduced geopolitical risk for energy infrastructure in the region.
ICE Brent crude futures traded at $72.58/bl as of 4:21 AM in London, down from $76.05/bl at Friday's close.
Israel targeted Iranian military facilities in Tehran for airstrikes on Saturday morning, in response to earlier attacks in the other direction.
But Iran's oil and gas infrastructure, nuclear facilities and leadership were left out of the list of targets.
An attack on Iran's refineries or oil export terminals would have been likely to trigger a sharp upswing in prices, and the oil market has been looking intently at this scenario in recent weeks. Attacks of this kind now appear less likely in the near term at least.
Destroying the export infrastructure on Kharg Island in particular could have led to a significant drop in Iranian crude reaching the global market.
Iran is a significant fuel oil producer, as well as supplying much of the crude oil exported to China.
"The attack was measured, and Iran's response today suggests there may be no retaliation," Arne Lohmann Rasmussen, head of research at Global Risk Management, said in a LinkedIn post on Sunday evening.
"Israel has destroyed parts of the Iranian air defence likely deterring Iran from any retaliation.
"The restrained response has also fueled optimism that a ceasefire in Gaza could be reached, further reducing the geopolitical premium."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 569.50 | 6.50 | 680.00 | 10.50 |
| Rotterdam | 514.00 | 2.50 | 676.00 | 7.50 |
| Houston | 547.50 | 0.00 | 671.50 | 1.50 |
| Fujairah | 561.00 | 0.50 | 751.00 | 1.50 |
| Global 20 Ports Average | 586.00 | 0.00 | 759.00 | 0.00 |
| Global 4 Ports Average | 548.00 | 2.00 | 694.50 | 5.00 |
| Global Average Bunker Price | 633.50 | 1.00 | 798.50 | 0.50 |
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