The price of oil fell by about 0.5%, despite increased tensions in the Middle East. Pressure on prices is exerted by concerns about global demand, the recent rally in the US currency, as well as partial profit-taking.
Oil has fallen in price since the beginning of the week, as economic headwinds pressed investor sentiment. However, uncertainty remains about Israel's response to Iran's recent attack on the country. Experts have concluded that Israel's actions will determine whether a broader regional conflict may arise that could significantly affect oil supplies. However, it remains hoped that tensions will ease and other key oil producers such as Saudi Arabia will help mitigate any global supply shock.
As for the prospects for oil demand, the latest Chinese economic data signaled that demand in the domestic market remains weak, which negatively affects the overall dynamics. In addition, another increase in oil reserves in the United States is forecast for last week - by 1.6 million barrels after an increase of 5.8 million barrels a week earlier.
According to OANDA analysts, in the short term, WTI oil will trade in the range of $83.20-$87.70 due to conflicting factors, such as China's disappointing retail sales in March and geo-political risk premium still remaining intact.