After Iran attacked bases housing US forces in Iraq, the UAE’s energy minister said no immediate risk to oil passing through the Strait of Hormuz.
The missile strikes were a response to the killing of top Iranian commander on Friday in Baghdad, Iranian officials said.
The minister said what was happening should not be exaggerated as the situation was not a war.
Oil prices on Wednesday were about 1 percent higher. If needed, any possible oil shortages will be responded by OPEC. OPEC’s Secretary-General Mohammed Barkindo is confident that leaders in the Middle East are doing everything possible to restore normal conditions.
Supported by healthy demand, supply shortage is not expected. In addition, global oil inventories are hovering around the five-year average.
