Oil slips on reduced fears of conflict in the middle East

© AP Photo / Hasan JamaliДобыча oil in the middle East. Archival photoOil slips on reduced fears of conflict in the middle East© AP Photo / Hasan Jamali

Oil prices slightly accelerated decline compared with the morning levels, as the lingering concerns about a further escalation of the geopolitical situation after the air strikes on Syria eased somewhat, according to trading data and analysts ‘ comments.

According to trading at 14.35 GMT, the cost of June futures for North sea petroleum mix of mark Brent decreased by 1.10% to 71.78 per barrel, and the cost of may futures for WTI — by 1.11% to 66,64 dollars per barrel.

On the morning of 14 April, the United States, Britain and France launched rocket attacks on Syrian government facilities that, in their opinion, are used to produce chemical weapons. They fired on Syria more than 100 rockets, most of which was shot down by Syrian air defense. Russian forces were not involved, but kept track of all the triggers.

«As for the events in Syria, the market breathed a sigh of relief in the sense that the intervention of the United States, France and Britain did not follow any further escalation, in diplomatic terms, and on the ground,» said Reuters analyst BNP Paribas of Harry Chilingarian (Harry Tchilinguirian).

In addition, market participants continue to react to the increased drilling activity in the United States. According to the American oil and gas service company Baker Hughes, a GE Company (BHGE) for the week ended April 13, the number of oil rigs in the country rose for the week on seven pieces, or 0.9%, to 815 units.

On the other hand, some support for oil prices provide statements of the Secretary-General of OPEC, Mohammed Barkindo, which earlier on Monday said that world oil demand will increase to 100 million barrels a day faster than expected. He also added that this year the demand for oil will be stable. According to the April report, the organization expects demand growth to 111,1 million barrels per day in the years 2016-2040.

Oil slips on reduced fears of conflict in the middle East© RIA Novosti, Integratiebeleid in photomontaged forces in the world oil market