Despite a recent surge in crude oil prices due to tensions between Israel and Iran, market analysts are now predicting a potential cooling off period in the coming days. The Minister for Petroleum and Natural Gas in India, Hardeep Singh Puri, reassures that there is currently more oil available in the world than the demand, highlighting the presence of new suppliers in the market to offset potential shortages.
India, a country heavily reliant on crude oil imports, is closely monitoring the situation amid concerns of supply disruptions. Energy market expert Narendra Taneja warns of a possible crisis if tensions in the Gulf escalate, mentioning the risk of Iran blocking the Straits of Hormuz, a critical transportation route for oil. However, experts believe that unless the situation worsens significantly, crude oil prices are expected to soften, as both Israel and Iran are unlikely to engage in a full-scale war due to the potential consequences.
President of the Eurasia Group, Ian Bremmer, explains that the cautious approach of Israeli Prime Minister Benjamin Netanyahu towards starting a war with Hezbollah indicates a lower likelihood of an all-out conflict. Sara Vakhshouri, President of SVB Energy International, stresses that the impact of geopolitical factors on oil prices is contingent upon the scale of destruction and the amount of oil that could be taken off the market. The markets seem to reflect a sense of calm, with Brent crude prices showing a downward trend in the futures market, indicating a gradual dissipation of current tensions. Additionally, reports from ANZ suggest that there are enough supply buffers from OPEC to offset any potential disruptions in the Middle East.