Key OPEC+ Members And The U.S. Have Cooled Oil Prices

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Oil prices in the morning of March 18 fell after growth at the end of the trading session on March 17. Quotes went down after Iraq signed an agreement to resume oil exports through Turkey, which allows bypassing the Strait of Hormuz, as well as in connection with the intensification of U.S. efforts to force the opening of the strait, reports Bloomberg.

According to the investing portal, as of 9:56 Kiev time, the cost of Brent crude oil fell by $1.29 - to $102.13 per barrel. U.S. WTI crude fell by $2.3 to $93.23 per barrel.

Iraq has agreed with Kurdistan to resume oil exports through a pipeline leading to the Turkish Mediterranean port of Ceyhan.

The United States, in turn, said it attacked Iranian anti-ship cruise missile launchers near the Strait of Hormuz, a key route for energy exports. At the same time, Bloomberg notes that there is further escalation in the Middle East following Iran's confirmation of the death of a key figure in the country's military leadership, Ali Larijani.

"Larijani's assassination is a major development that could make Iran even more determined to try to obstruct oil supplies," said Aaron Stein, president of the Foreign Policy Research Institute.

The expert does not rule out that the US will decide to conduct military operations to ensure free navigation in the Strait of Hormuz.

"Trump is obviously under pressure to provide escorts for tankers - so we're in for possibly very tense operations from the US, which I'm sure the Navy would like to avoid," Stein added.

For now, Iran will give the green light to ships in the Strait of Hormuz depending on political preferences. Journalists speculate that Iran is likely to allow only a few ships to pass based on their ownership, while deterring or blocking the rest. Assuming that oil transportation through the Strait of Hormuz continues to be significantly restricted, Robert Rennie, head of commodities research at Westpac Banking Corp, anticipates that Brent crude will range between $95 and $110 a barrel.

"With no end to hostilities in sight, the number of stoppages growing daily and the Strait technically closed, we still believe the price of Brent will remain in a new, higher range of $95 to $110," the expert said.

He added that the cost of "black gold" could rise further in the event of a strike on a major refinery or additional mining of the Strait of Hormuz.

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