Oil prices fall after Middle East ceasefire

(Patria) - Oil prices fell more than 11 percent last week as fears of oil supply disruptions from the Middle East subsided following a ceasefire agreement between Israel and Iran.

The price of a barrel on the London market fell 12 percent last week to $67.77, while a barrel on the US market fell 11.3 percent to $65.52.

Oil prices fell sharply at the beginning of last week when a ceasefire agreement was reached between Israel and Iran. This allayed fears of oil supply disruptions from the Middle East and the closure of traffic through the Strait of Hormuz, through which 18 to 19 million barrels of crude oil and fuel for customers worldwide pass daily.

"The announcement of the ceasefire has 'wiped out' the geopolitical risk premium from oil prices," says Ole Hvalbaj from SEB. Thanks to this, oil prices have slipped to almost the same levels as before the outbreak of the Israeli-Iranian war.