by Florence Tan
SINGAPORE, May 20 (Reuters) – Oil prices rose on Monday amid political uncertainty in two major crude-producing countries following the death of Iran’s president in a helicopter crash and the cancellation by Saudi Arabia’s crown prince. Saudi woman from a trip to Japan, her father being ill.
Around 08:32 GMT, Brent rose 0.25%, to $84.19 per barrel, after reaching $84.43, its highest level since May 10.
American West Texas Intermediate (WTI) crude for June, for its part, advanced 0.06%, to 80.11 dollars per barrel, after reaching 80.35 dollars, its highest level since May 1.
Iranian President Ebrahim Raïssi died in a helicopter accident on Sunday in thick fog in a mountainous area while he was returning from a trip near the border with Azerbaijan.
All passengers on the plane, including the Iranian Minister of Foreign Affairs, Hossein Amirabdollahian, died in the accident.
Ebrahim Raïssi, “tough” of the Iranian theocratic regime, was considered by many observers as one of the favorites to succeed Ali Khamenei, aged 85, who has been the country’s supreme guide since 1989 – the one who ultimately decides of all the major policies of Tehran.
Saudi Arabia’s Crown Prince Mohammed bin Salman, for his part, postponed his visit to Japan, which was to begin on Monday, due to his father’s health problem, said Yoshimasa Hayashi, the secretary general of the cabinet of Japanese Prime Minister Fumio Kishida.
Saudi Arabia’s official news agency reported Sunday that 88-year-old King Salman would undergo treatment for lung inflammation.
“If the father’s health is failing, this adds to the layer of uncertainty which already surrounds the energy markets this morning after the announcement of the disappearance of the Iranian president,” underlines Tony Sycamore, analyst at IG Markets.
According to Tony Sycamore, the price of WTI could rise to $83.50 after exceeding its 200-day moving average of $80.02.
“I think there are enough reasons for this to happen, especially considering the measures in Chinese real estate announced last week, including the relaxation of mortgage rules, the reduction of deposits and the purchase of unsold housing,” he added, referring to the “historic” measures presented by Beijing on Friday.
For Saul Kavonic, energy analyst at MST Marquee, however, the market and the industry are already accustomed to the leadership of Crown Prince Mohammed Bin Salman in the energy sector.
“The continuity of the Saudi strategy is expected regardless of this health problem,” he said. (Reporting by Colleen Howe in Beijing and Florence Tan in Singapore; French version by Claude Chendjou, editing by Kate Entringer)
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