Oil prices sink deeper as Mideast tensions ease

TOKYO-Oil prices continued its underperformance as the possibility of war in Middle East abated and investors focused on economic growth together with increase in US crude oil and output inventories.

Brent crude oil LCOc1 decreased by 20 cents, equivalent to 0.3% at $65.17 by 0240 GMT. Such is expected to hit its first setback in six weeks, shedding 5%.

West Texas Intermediate declined 20 cents, equivalent to 0.3% at $59.36.WTI is also viewed to reach lowest ground in six weeks from Friday’s session according to recent prices.

Oil fell deeper, far from its records before a US-conducted strike killed one of Iran’s top commanders last Jan. 3. As a response, Iran launched missile attack targeted at Iraq airbase facilitating US forces, but no casualties or damage was reported.

“Although markets are rightly pricing in a lower risk of … supply-side disruptions in the Middle East, we still think there remains some ongoing risk to output from geopolitical issues in the region,” J.P.Morgan stated in a commodities note.    

A Ukrainian airliner that crashed within Iran’s base during the early hours of Wednesday following Iran’s attack on Iraq, was viewed to be caused by one of Iran’s missiles, Canada’s Prime Minister Justin Trudeau said on Thursday.

An estimated 180 passengers, boarded inside the Ukrainian airplane bound from Tehran to Kiev, all died as Iran disproved claims that it was because of their missile.

Recently, investors are focused on areas far from dispute.

Crude stocks of world’s largest producer beat forecast as gasoline increased the highest in a week in four years, US Energy Information said last Wednesday.