Oil prices fell about 5% today, on track for their biggest single-session decline in more than six months, after US President Donald Trump announced over the weekend that Iran was in serious talks with Washington to reduce escalation.
President Trump said, “I hope they can negotiate something they can accept. We can reach a satisfactory agreement even without nuclear weapons.”
Brent crude oil futures fell $3.30, or 4.8%, to $66.02 per barrel. U.S. West Texas Intermediate crude oil fell $3.23, or 5%, to $61.98 per barrel.
dollar value
Oil market analyst Priyanka Sachdeva said continued threats supported oil prices throughout January.
“The recent decline has been exacerbated by the rise in the value of the dollar, making dollar-denominated oil more expensive for buyers in other currencies and increasing pressure on prices,” he added.
Market analyst Tony Sycamore said President Trump’s comments and reports that Iran’s Revolutionary Guards Navy will not hold live-fire exercises in the Strait of Hormuz are a sign of calm.
“Oil markets see this as an encouraging retreat from the confrontation, with the geopolitical risk premium that drove last week’s rally coming down, stimulating a wave of profit-taking,” he said.
Oil prices fell nearly 5% today, on track for their biggest single-day decline in more than six months, after US President Donald Trump announced earlier this week that Iran was in serious talks with Washington and signaled a de-escalation of tensions.
“I hope they can negotiate something that they can accept. We can reach a satisfactory agreement without nuclear weapons,” Trump said.
Brent crude oil futures fell $3.30, or 4.8%, to $66.02 per barrel. West Texas Intermediate crude oil fell $3.23, or 5%, to $61.98 per barrel.
dollar value
Oil market analyst Priyanka Sachdeva said continued threats supported oil prices throughout January.
“The recent decline was also exacerbated by the rising value of the dollar, making dollar-denominated oil more expensive for buyers using other currencies, increasing pressure on prices,” he added.
Market analyst Tony Sycamore said Trump’s comments and reports that Iran’s Revolutionary Guards Navy would not conduct live-fire training in the Strait of Hormuz were signs of easing tensions.
“Oil markets see this as an encouraging retreat from the conflict, with the geopolitical risk premium that drove last week’s rally coming down, triggering a wave of profit-taking,” he said.
