Trump's Signal Calms Markets, Oil Prices Immediately Weaken
World oil prices fell after United States President Donald Trump signaled that a US response to the situation in Iran would not be imminent. This decline occurred after oil prices had previously risen for five consecutive days. Trump's statement calmed the market and eased fears of a major conflict.
West Texas Intermediate (WTI) crude oil fell below US$61 per barrel. Meanwhile, Brent oil closed below US$67 per barrel. This was the first decline in six days after a strong price rally.
Trump said he was confident Iran would stop the violence against demonstrators. This statement led market participants to assess the risk of US military action as less severe. Consequently, the threat of disruption to Iranian oil production and major shipping lanes was also considered to have diminished.
Meanwhile, US government data showed that national crude oil stocks increased by 3.4 million barrels in the past week. This was the largest increase since early November. This increase in stocks added pressure on oil prices as supplies were considered to remain abundant. Previously, oil prices rose at the start of the year due to tensions in Iran and the political crisis in Venezuela. Both countries are major global oil producers. However, easing geopolitical concerns have refocused the market on supply, leading to a price correction. (az)
Source: Newsmaker.id
