Oil rises after the death of Iran’s president and news from Saudi Arabia;
Oil prices rose after the Iranian president died in a plane crash and the Saudi crown prince canceled a trip to Japan, citing the king’s health problems. This was reported by Reuters.
Brent crude rose 41 cents, or 0.5%, to $84.39 per barrel. U.S. West Texas Intermediate (WTI) crude rose 23 cents to $80.29 per barrel. The June contract expires on Tuesday, and the more active July contract was at $79.89, up 31 cents, or 0.4%.
Iranian President Ebrahim Raisi dies as a result of a helicopter crash in a mountainous area near the border with Azerbaijan.
In addition, Saudi Crown Prince Mohammed bin Salman postponed his visit to Japan, scheduled for Monday, due to health problems of his father, King Salman.
“If his father’s health deteriorates, it will add to the level of uncertainty that has already spread across energy markets this morning following the news of the Iranian president’s disappearance,” said Tony Sycamore, an analyst at IG Markets.
He noted that the price of WTI has already exceeded the 200-day moving average of $80.02 and may continue to rise to $83.50.
Overall, Brent ended the previous week with a price increase of about 1%, which was its first weekly increase in three weeks. At the same time, amid improving economic performance of the world’s largest oil consumers, the United States and China, WTI prices rose by 2%.
