US EditionOil Prices Tumble 5% Amid Signs of U.S.-Iran De-Escalation
- On Monday, oil prices slid as investors pared supply-shock fears after U.S. President Donald Trump's remarks, with global benchmark Brent falling 6.4% to $66.15 and U.S. West Texas Intermediate futures down 4.75% at $62.11.
- Reports showed that intermediaries were relaying messages between Washington and Tehran, raising hopes tensions could ease while Washington last week deployed a "massive Armada," stoking confrontation fears.
- Andy Lipow said `While additional quantities of Venezuelan oil are coming to market as offshore and on shore inventories are liquidated and sold, the oil market will also continue to be supported by OPEC+ decision to hold steady its current production levels` and OPEC+ left production unchanged for March.
- U.S. administration concerns about $70-$80 oil may limit escalation, as Marko Papic said, due to political sensitivity ahead of midterm elections later this year.
- Recent run-ups show how military-risk fears drive volatility as oil prices rose more than 1.5% in Asian trade on Thursday amid U.S. military attack concerns and hit a six-month high recently.
101 Articles
101 Articles
Oil steady as markets consider possible US–Iran de-escalation, firm dollar
Feb 3: Oil prices held steady on Tuesday as market participants weighed the possibility of a de-escalation in U.S.-Iran tensions, with a firmer dollar limiting the upside.Brent crude futures were up 6 cents, or 0.1 per cent, at $66.36 per barrel at 0102 GMT. U.S. West Texas Intermediate crude was at $62.24 pe
A broad settlement on the commodities market also weighs on prices, as well as on the progress of the dollar
Markets believe that the geo-political risk premium is only temporary and that an escalation is less and less likely.
"I hope we reach an agreement," Trump said on Sunday, in response to the Iranian Supreme Leader's statements. Khamenei warned that any North American attack would trigger "regional war".
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