Oil and gas prices plummeted in a relief rally following the announcement of a ceasefire between Iran and the US, but experts cautioned that huge fuel supply risks remain.
The truce offers the prospect of shipments resuming from Gulf fossil fuel producers; benchmark oil prices fell below $100 a barrel on the news. Yet the lack of a durable peace deal means āvolatility [is] likely to persist,ā ING economists warned, and in any case production will not immediately rise: Gulf nations suffered damage to energy facilities and markedly reduced operations in recent weeks.
Refined products are also likely to be in shortfall, with the world airline body warning that it would take months for jet fuel supplies to return to prewar levels.
