Oil prices fell despite tensions in the Middle East

Oil prices fell despite tensions in the Middle East

Oil prices came under pressure despite tensions in the Middle East. The price for a barrel of North Sea Brent fell to $86.78, while a barrel of US West Texas Intermediate was at $82.92. Although a possible military strike against Iran temporarily raised oil prices on Friday, they fell overall last week. However, since the beginning of the year, crude oil prices have increased by around 13 percent, due to tight supply from major producing countries and a possible economic recovery in Europe and China.

Analysts at the US bank JPMorgan view the increased level of oil prices as a monetary policy risk. They fear that the US Federal Reserve's interest rate policy could be called into question, which has already led to a reduction in interest rate cut expectations. The ongoing inflation, favored by rising oil prices, has a significant influence on this development. Investors in the oil market are therefore turning their attention to next Friday's release of the PCE index, which serves as the Fed's preferred price measure.

The geopolitical crises in the Middle East and the tight supply of major oil producing countries continue to be key factors for the development of oil prices. The economic recovery in Europe and China also plays a role. The tensions in the region as well as possible monetary policy decisions by the US Federal Reserve will therefore have a significant influence on further events on the oil market.