Brent crude falls to $102 after a session of strong oil fluctuations

Brent falls to $102 after strong fluctuations, amid tension in Hormuz and with the IEA warning of a possible "red zone" this summer.

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Partido Escaños Votos Porcentaje
PP 53 -5 1.735.819 41.60%
PSOE-A 28 -2 947.713 22.71%
VOX 15 +1 576.635 13.82%
ADELANTE ANDALUCÍA 8 +6 401.732 9.62%
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29 0 = 741 0.01%
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PorA 5 escaños

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The Brent crude oil barrel, a benchmark for Europe, has fallen to $102, a drop of nearly 2%, after a session in which it reached $108 and in which Iran has reported that 31 ships crossed the Strait of Hormuz in the last 24 hours.

At the same time, the West Texas Intermediate (WTI), a key indicator in the United States, stands at $96, with a daily decrease of 2%. In parallel, the TTF contract in the Netherlands, a European benchmark for natural gas, was trading at 46.86 euros per megawatt-hour, down 5.2%.

Crude oil has lost around $6 by late afternoon, despite having rallied for a good part of the day and after sinking up to 7% in the previous session, sharp movements that have become common since the United States and Israel began their offensive against Iran on February 28.

Iranian authorities have indicated that in the last 24 hours, up to 31 ships have crossed the Strait of Hormuz, while Washington maintains the blockade on ships using this corridor destined for Iranian ports. Along these lines, the United States Central Command (CENTCOM) stated this Thursday that its forces have "redirected 94 commercial vessels and immobilized four."

Likewise, the Iranian Navy has emphasized its work to "establish a safe and clear route" in the area "despite the aggression of the US Army" and "unprecedented insecurity" in the Persian Gulf.

On the other hand, the International Energy Agency (IEA) has warned that the oil market could enter the "red zone" in July or August, as reserves decrease and the pull of crude demand strains supply, in a context marked by increased summer travel.

"Normally, oil demand and consumption increase. (However), reserves are running out, new oil is not arriving from the Middle East, and demand is increasing. This can be complex, and we could enter the red zone in July or August if the situation does not improve," the IEA director, Fatih Birol, stated this Thursday during an event at the British think tank Chatham House.

In this context, Brent remains well above the $72 recorded before the start of the Iran war, although still far from the April high, when the barrel reached $126.

The practical paralysis of maritime traffic in Hormuz has forced Gulf producers to reduce their pumping, simultaneously fueling the rise in the price of oil and natural gas, while the sector remains pending a possible de-escalation in the area and the end of the attacks.

These sharp price adjustments in energy markets are occurring in a scenario where firm signs of a near resolution to the conflict are still not appreciated, with the occupant of the White House leaving open the option of new bombings on the Islamic Republic of Iran and admitting that he is in no hurry to reach a ceasefire.