Oil: timid rise in crude oil after the death of Iranian President Ebrahim Raïssi

(Boursier.com) — Oil prices are only rising slightly at the start of the week with a barrel of Brent trading above $84 (+0.1%), despite geopolitical uncertainties in the Middle East and the announcement of the death of the Iranian president. Brent finished the previous week up about 1%, its first weekly gain in three weeks, while WTI rose 2% as economic indicators improved in the United States and China, the largest oil consumers in the world.

Ebrahim Raïssi and his Minister of Foreign Affairs Hossein Amirabdollahian were killed in a helicopter accident that occurred on Sunday in a mountainous area while he was returning from a trip near the border with Azerbaijan, while we worried about the health of the king of Saudi Arabia. Saudi Crown Prince Mohammed bin Salman has postponed his visit to Japan, which was scheduled to begin on Monday, due to a health problem with his father, King Salman, Japan’s Chief Cabinet Secretary Yoshimasa Hayashi said.

Saudi Arabia is OPEC’s top producer and Iran the third, but there is no immediate sign that recent developments will lead to a change in oil supplies. Iran’s Supreme Leader Ayatollah Ali Khamenei said there would be “no disruption in the country’s affairs” following the accident. Saul Kavonic, analyst at MST Marquee, told ‘Reuters’ that the market and industry were already accustomed to Crown Prince Mohammed Bin Salman’s leadership in the energy sector: “the continuity of the Saudi strategy is expected regardless of this health problem.

In Europe, Ukraine continues its drone attacks against Russian refining sites, while an oil tanker bound for China was hit by a Houthi missile in the Red Sea on Saturday.

“The market has become increasingly insensitive to geopolitical developments, and OPEC’s large amount of unused production is probably contributing to this,” Warren Patterson, head of commodities strategy at ING Groep, told the agency. “We may have to wait for further clarification from OPEC+ on its production policy to move out of the range.” The next meeting of the cartel and its allies is scheduled for June 1. Observers widely expect a renewal of existing restrictions.