Introduction 1- Oil prices stabilize after the US and Iran agree to halt attacks
SAUDI ARAMCO 2222.SA | 0.00 |
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By Alex Lawler
LONDON, June 29 (Reuters) - Oil prices were steady on Monday after Iran and the United States agreed to a ceasefire in the Gulf, while Middle East oil and liquefied natural gas producers continued loading operations despite new attacks on ships.
The two countries agreed to resume talks on the Strait of Hormuz, boosting hopes of salvaging a temporary ceasefire agreement that had been jeopardized by days of exchanging attacks.
Brent crude futures rose just four cents to $72.03 a barrel by 0803 GMT, while U.S. West Texas Intermediate crude gained 44 cents, or 0.6 percent, to $69.67 a barrel.
“There are still many risks facing the oil market,” ING analysts said in a note released Monday . “However, market participants appear to be focused on what a continued recovery in oil flows might mean for the global balance… This clearly leaves significant risks that could push prices higher if the supply recovery proves to be slow.”
Brent crude fell 10.6 percent last week, its third weekly decline, after oil shipments through the Strait of Hormuz rose last week to their highest level since the start of the US-Israeli war on Iran in late February.
Shipping data showed that Middle Eastern oil and liquefied natural gas producers continued loading operations despite new attacks on ships in the Strait of Hormuz and renewed attacks between the United States and Iran in the past few days.
Saudi Aramco resumed loading crude oil at Ras Tanura, west of the Strait of Hormuz, on Friday after a nearly four-month hiatus.
Loading operations continued even after a company helicopter crashed yesterday, Sunday, in Ras Tanura, killing 14. The reasons for the crash are still unknown.
