Decline in Basrah crudes despite global market surge

Shafaq News / The prices of Basrah Heavy and Basrah Medium crude oil dropped on Tuesday, despite the rise in oil prices in the global markets.

The price of Basrah Heavy crude oil decreased by 57 cents to reach $85.94, while the price of Basrah Medium crude oil also dropped by 57 cents to reach $89.14.

Globally, oil prices rose as the Chinese economy grew faster than expected, while heightened tensions in the Middle East also kept markets on edge after Israel said it would respond to Iran's weekend missile and drone attack.

Brent futures for June delivery rose 48 cents, or 0.5%, to $90.58 a barrel. U.S. crude futures for May delivery rose 49 cents, or 0.6%, to $85.90 a barrel.

Oil prices soared last week to the highest levels since October, but fell on Monday after Iran's attacks, which its government called a retaliation for an air strike on its Damascus consulate, caused only modest damage.

"Israel's response will determine whether the escalation ends or continues. The conflict could still be contained to Israel, Iran and its proxies, with possible involvement of the U.S.," analysts at ANZ Research said in a note on Tuesday.

Israel's Prime Minister Benjamin Netanyahu on Monday summoned his war cabinet for the second time in less than 24 hours to weigh how to react to Iran's first-ever direct attack on Israel.

Iran produces more than 3 million barrels per day of crude oil as a major producer within the Organization of the Petroleum Exporting Countries (OPEC).

(With Reuters input)