Home / Business / Oil prices fall sharply – the reasons | 07/18/19

Oil prices fall sharply – the reasons | 07/18/19



The oil price came under heavy pressure on Thursday.

The price of a barrel North Sea Brent (159 liters) dropped to $ 61.96. It was $ 1.72 less than the day before. The price of a barrel of American West Texas Intermediate (WTI) fell $ 1.56 to $ 55.21.

The fear of further tightening in the trade event between the US and China also pushed down the oil price. US President Donald Trump threatened Beijing with additional penalties. If the trade conflict intensified again, it would affect the world economy and reduce the demand for crude oil.

Iran's seizure of a foreign tanker was only temporary with small price gains. "It is still unclear what the background to the reports of tanker confiscation is," said commodity Carsten Fritsch from Commerzbank, the cautious reaction to the oil market. The Tasnim News Agency reported that Revolutionary Guards (IRGC) stopped a foreign oil tanker Thursday with allegedly one million liters of smuggled oil near the Hormuz route and arrested the twelve foreign crew members. The event had already occurred last Sunday.

Since it's a fairly small ship, "the market is probably more likely to assume it's a smuggling story," said expert Fritsch. Details of the tanker and crew member nationality were not originally revealed by Iran's revolutionary guards.

Recently, there have been several incidents in the crisis region, where oil tankers were also damaged. For months, a conflict in the region has smoldered between the Opec country Iran and the United States. The dispute has intensified in recent weeks and threatens to lead to a military conflict.

/ jsl / he

NEW YORK / LONDON (dpa-AFX)

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