Analysts see monetary policy risk: oil prices fell despite tensions in the Middle East

Analysts see monetary policy risk: oil prices fell despite tensions in the Middle East

Oil prices fell slightly at the start of the week despite tensions in the Middle East. A barrel of North Sea Brent cost $86.75 at midday on Monday, down 54 cents from Friday. The price for a barrel of the US variety West Texas Intermediate fell by 33 cents to $82.81.

Despite ongoing tensions in the region, oil prices fell last week. Even a military strike against Iran, attributed to Israel, could only lead to a temporary rise in oil prices. However, since the beginning of the year, crude oil prices have risen by around 13 percent overall. In addition to the geopolitical crises, this increase is also influenced by the tight supply of large producing countries and the gradual recovery of the economy in Europe and China.

Analysts at the US bank JPMorgan view the current high level of oil prices as a monetary policy risk. They warn of a possible questioning of the US Federal Reserve's interest rate policy, as the inflation rate is already stubborn due to rising oil prices. Expectations of interest rate cuts by the Fed were also reduced. The prospect of continued inflation, fueled by rising oil prices, adds to concerns.

Current developments in the oil markets remain important for investors as they can have far-reaching effects on the global economy. Close observation of price movements and underlying factors is therefore crucial to making informed investment decisions. Oil prices are expected to continue to be influenced by geopolitical events and economic developments, which could maintain volatility in energy markets.