Oil prices plunged more than 11 percent last week as fears of disruptions to Middle East oil supplies eased after a ceasefire agreement between Israel and Iran.
The price of a barrel on the London market fell 12 percent last week to $67.77, while on the US market a barrel fell 11.3 percent to $65.52.
Oil prices fell sharply early last week, when a ceasefire agreement was reached between Israel and Iran. This eased fears of disruptions to Middle East oil supplies and the closure of the Strait of Hormuz, through which between 18 and 19 million barrels of crude and fuel pass daily for customers around the world.
“The announcement of the ceasefire ‘erased’ the geopolitical risk premium from oil prices,” says Ole Hvalbaj of SEB. As a result, oil prices have slipped to almost the same levels they were at before the outbreak of the Israeli-Iranian war.
