Oil prices fall amid political uncertainty after Iranian leader’s death

(MENAFN) Oil prices experienced a decline on Monday due to political uncertainty in major oil-producing countries following the death of Iranian President Ebrahim Raisi in a helicopter crash. By 09:58 GMT, brent crude had fallen by 24 cents, settling at USD83.74 per barrel, while US West Texas Intermediate (WTI) crude saw a decrease of 33 cents to USD79.73 per barrel. Futures contracts for June delivery are set to expire on Tuesday, with WTI contracts for July delivery trading down 28 cents at USD79.30 per barrel.

The incident occurred in a mountainous region near the border with Azerbaijan, with Iranian officials and government media confirming Raisi's death. Despite this sudden event, it is expected that Iranian oil policy will remain unaffected. Meanwhile, in Europe, a new Russian energy facility was bombed. According to TASS, a security official at the Slavyansk refinery in the Krasnodar region reported damage from a drone attack over the weekend.

Warren Patterson, head of commodities strategy at ING, commented on the situation, stating that the oil market remains largely range-bound. He noted that without any new catalysts, it is likely that market participants will need to wait for a clearer picture regarding OPEC+ production policy to see significant changes in oil prices. 

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