Global oil prices retraced on Monday after reports showed Israel strikes avoid Iran’s oil facilities in its much anticipated retaliatory attack.
Brent crude oil, against which Nigerian oil is priced, declined below $72 per barrel while the US West Texas Intermediate crude oil was trading near $68.
Israel Defense Forces (IDF) said it attacked military targets across Iran on Saturday and struck “strategic systems.”
“We drew upon only some of our abilities,” Chief of Staff Lt. Gen. Herzi Halevi said in the clip, part of a meeting in which top brass assessed the results of the assault, a retaliation for Iran’s massive Oct. 1 ballistic missile barrage on Israel. “We have the ability to do much more.”
“We hit strategic systems in Iran… and we will see how things develop now. We are ready for all scenarios on all fronts,” he added.
Experts are now predicting a further decline in the price of crude oil and expected uncertainty surrounding the United States election to impact commodity prices in the remaining part of the year.
“We may see further short-term downward pressure as the geopolitical premium is priced out,” said Arne Lohmann Rasmussen, chief analyst at A/S Global Risk Management. “However, we see strong support around $70 and, with last night’s price drop, most of the geopolitical premium is likely already priced out.”