Oil Prices Dip Amid Geopolitical Uncertainty; Gas Rates Remain Steady
Why are oil prices down and gas rates steady today, and will Brent crude, US WTI futures, Dutch and British natural gas prices rise or decline in near future? Oil dips as markets watch Iran ceasefire, Trump-Xi China summit and Strait of Hormuz risks
The Economic TimesImage: The Economic Times
Oil prices fell on May 13, with Brent crude dropping to $106.91 per barrel and US West Texas Intermediate at $101.14 per barrel, as markets await updates on the fragile Iran ceasefire and a significant meeting between US President Donald Trump and Chinese President Xi Jinping. European gas prices remained stable amid cautious trading and low storage levels.
- 01Brent crude futures decreased by 86 cents to $106.91 per barrel.
- 02US West Texas Intermediate futures fell by $1.04 to $101.14 per barrel.
- 03Geopolitical tensions, particularly regarding the Iran ceasefire, are influencing market volatility.
- 04European gas prices are stable, but storage levels are concerning at 35.6% full.
- 05Analysts predict oil prices could remain above $80 per barrel for the rest of the year.
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On May 13, oil prices experienced a decline after a three-day rally, with Brent crude futures falling by 86 cents to $106.91 per barrel and US West Texas Intermediate futures decreasing by $1.04 to $101.14 per barrel. The market is currently sensitive to geopolitical developments, particularly the ongoing Iran ceasefire negotiations and the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping in Beijing. The Strait of Hormuz, a crucial shipping route for global oil and liquefied natural gas (LNG), remains a focal point due to supply risks. Meanwhile, European gas prices have remained steady, with the Dutch front-month TTF contract slightly increasing to 46.75 euros per megawatt hour and the British June contract dipping to 114.70 pence per therm. However, European gas storage levels are concerning, currently at 35.6% full, compared to 42.8% last year, raising worries about winter supply. Analysts suggest that oil prices could stay above $80 per barrel for the remainder of the year, driven by supply losses from ongoing conflicts, while demand concerns may lead to volatility in the market.
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Fluctuations in oil prices could lead to increased fuel costs for consumers, affecting household budgets and overall inflation rates.
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