Published: Sat, January 11, 2020
Markets | By Otis Pena

Oil falls as focus shifts from Iran tensions to U.S. crude stocks

Oil falls as focus shifts from Iran tensions to U.S. crude stocks

"Hostilities may have ended for the time being, but the longer-term risks of conflict have by no means vanished", said Stephen Brennock of oil broker PVM.

The President did not signal any additional US military action following the strikes, but said his administration would impose additional "punishing" sanctions on Iran while Washington "evaluates options in response to Iranian aggression". "We have a reduced dependency on the Middle East", Pulido said. It made an intraday low of 40,036.00 and high of 40,144.00 today.

Oil is cheaper than it was before the killing of the Iranian commander, Qassem Soleimani, in Baghdad, a strike that raised fears of an escalating regional conflict.

Brent futures prices crept up from month lows hit overnight to $65.84 per barrel, about where they began the year. The dollar index .DXY , tracking the unit against six peers, rose 0.15%, with the euro EUR= up 0.01% to $1.1104.

As for the Iranian situation, the fears of earlier this week seemed to be assuaged not so much by the Islamic republic's failed missile strike against USA forces in Iraq and its subsequent stand down, but the fact that the hostilities caused no disruption in Middle East oil production.

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The president announced on Wednesday at the White House that the missile attack of Iran has left no USA casualties and that "Iran appears to be standing down", saying that it was "a good thing" for all parties concerned.

"Trump completely downplayed the idea of going to war with Iran or even any sort of retaliatory measures", Bechtel said. Futures markets pointed to extended gains in Europe and the US, with S&P 500 futures up 0.2 per cent and German DAX futures 0.9 per cent higher. China's trade-exposed yuan CNY= reached a five-month high of 6.9281 per dollar, while South Africa's rand ZAR= and Turkey's lira TRY= , which had been buffeted this week, rebounded.

U.S. Treasuries, which had soared in the flight to safety a day ago also settled back, with yields on the benchmark 10-year U.S. Treasury note at 1.8598%, after dropping as low as 1.705%.

"All is well - so says Trump!"

"I think that neither side wants to have a further escalation in tension, and both parties seem to be standing down".

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