Oil Prices Unlikely to Decline Significantly Further, Experts Say
Quick Look
Oil prices, which fell on Monday, are unlikely to see a significant further decline, with Brent expected to stay above $80 per barrel amid geopolitical uncertainty and potential delays in restoring production.
AI-generated summary
Why It Matters
Oil prices have fallen, and experts are assessing the likelihood of further declines amid ongoing geopolitical uncertainty surrounding a potential peace deal between Iran and the United States.
MOSCOW, June 15. /TASS/. Amid ongoing geopolitical uncertainty around a possible peace deal between Iran and the United States, oil prices are unlikely to continue to decline noticeably after falling on Monday.
In the coming days, Brent prices are likely not to dip significantly below $80 per barrel, the experts told TASS.
"Taking into account the decline that has already occurred on Monday, we do not believe that in the coming days the price of Brent will become significantly lower than $80 per barrel. There is a lot of uncertainty both on the future resolution of controversial issues and on Israel's participation in the deal," said Kirill Bakhtin from BCS Investment World.
The Brent price has already fallen to about $88.6 per barrel, said Nikolay Dudchenko from FG Finam.
"Even if the [Hormuz] Strait is unblocked, the restoration of production by the Persian Gulf countries will take quite a long time. Tentatively, by the end of this year," Dudchenko added. At the same time, he does not expect that oil prices will continue to decline significantly. "If the Strait is unblocked, it is possible that we will see a price movement in the range of $75-85 per barrel, but a return to the levels of the beginning of this year is unlikely," the analyst noted.
What to Watch
AI outlook — possibilities, not facts
Brent prices will not dip significantly below $80 per barrel in the coming days.
Likely · Within days
If the Hormuz Strait is unblocked, oil prices may move in the range of $75-85 per barrel.
Possible · Short term
Open Questions
- Will a peace deal between Iran and the US be reached?
- What will be Israel's role in any potential deal?
- How long will it take to restore production in Persian Gulf countries?
