Oil prices were little changed on Monday after the United States and Iran agreed to suspend recent military operations, reducing short-term concerns over global energy supplies even as exporters in the Middle East continued loading crude oil and liquefied natural gas following new security incidents.
The two countries also committed to restarting negotiations over the Strait of Hormuz, improving prospects that the interim peace agreement can remain in place after several days of escalating military exchanges.
By 08:03 GMT, Brent crude futures were up 4 cents at US$72.03 per barrel, while U.S. West Texas Intermediate crude added 44 cents, or 0.6%, to US$69.67 per barrel.
“There’s still plenty of risk facing the oil market. Even so, participants appear to be … focusing on what a continued recovery in oil flows would mean for the global balance,” ING analysts said in a note on Monday.
“This complacency is odd and clearly leaves significant upside risk if the supply recovery proves slow.”
Brent crude recorded a weekly decline of 10.6% last week, its third consecutive weekly loss, after shipments through the Strait of Hormuz climbed to their highest level since the U.S.-Israeli conflict with Iran began in late February.
Shipping data showed that Middle Eastern producers have continued exporting oil and LNG despite renewed attacks on vessels and the latest military exchanges between Washington and Tehran.
Saudi energy producer Aramco resumed crude loadings at its Ras Tanura export terminal on Friday after operations had been suspended for nearly four months.
Exports continued uninterrupted despite a company helicopter crash at Ras Tanura on Sunday that claimed the lives of 14 people. Authorities have not yet identified the cause of the accident.