Oil Plunges 3% After Euphoria, Trump's Signals on Iran and Supply Cause Panic!
World oil prices fell sharply by almost 3% in Asian trading on Thursday (January 15), halting five consecutive days of gains after US President Donald Trump signaled a more restrained stance toward Iran. This decline occurred as market concerns about short-term oil supply disruptions began to ease following Trump's comments downplaying the risk of military escalation. Brent crude futures for March delivery fell about 2.8% to $64.67 per barrel, while WTI fell about 3% to $60.22 per barrel
Trump's comments that Iranian authorities were confident they would halt violence against protesters made the market perceive a diminishing risk of direct conflict, thus erasing the "risk premium" that had driven prices up more than 10% in recent sessions. Furthermore, Trump also mentioned positive talks with Venezuela on oil and other cooperation, raising hopes that Venezuelan oil exports would rebound and easing global supply concerns.
Traders are also closely monitoring US crude oil inventory data, which showed an unexpected increase last week. This increase indicates that domestic supply remains quite high, putting additional pressure on oil prices and dampening short-term bullish sentiment.
The combination of easing geopolitical concerns and signals of ample supply has put pressure on oil prices. Although risks in the Middle East and the dynamics of US-Venezuela relations remain market concerns, this price correction demonstrates that the oil market remains highly sensitive to changes in global sentiment.
This oil price plunge serves as a reminder that commodity market movements can change rapidly, especially when major political and geopolitical news is released quickly. Investors will now continue to monitor further developments in Iran, Venezuela, and global supply data to determine the future direction of oil prices. (az)
Source: Newsmaker.id
