PETROLE: Crude Oil Extends its Decline, Trump Ensures the End of the War is Near

Oil prices eased on Wednesday in hopes of progress in peace negotiations, despite conflicting reports from the Middle East.

U.S. President Donald Trump expressed confidence on Tuesday in ending the war with Iran “very quickly.” “We are going to end this war very quickly. They want to make a deal so badly, they are tired – it should have happened 47 years ago,” the leader said during a meeting with members of Congress at the White House, as reported by the Wall Street Journal.

“It’s going to happen, and it’s going to happen very fast. And you will see oil prices collapse,” Donald Trump also predicted.

At 5:10 p.m., the June contract for U.S. WTI crude lost 3.6%, at $100.43. Brent lost 3.8% in London, at $107.08.

Signs of a partial reopening of the Strait of Hormuz are also contributing to the easing of prices. On Tuesday, two Chinese tankers carrying oil passed through the strait without any issues. A South Korean ship also entered the strait, as reported by Reuters. Jim Reid, an analyst at Deutsche Bank, reacted, saying, “one of the busiest days since the blockade.”

The situation in the region could fuel oil market volatility, as Iranian chief negotiator Mohammad Ghalibaf accused the U.S. of “trying to start a new war,” as reported by AFP. The President of the Iranian Parliament also warned that Tehran was ready for a “strong response” in case of a new attack, again according to AFP.

Also in the news, investors learned of a significant drop in crude stocks last week in the U.S. The reserves decreased by 7.86 million barrels, to 445.01 million barrels, according to the U.S. Energy Department figures. Gasoline stocks also declined by 1.55 million barrels, to 214.16 million barrels.

Agefi-Dow Jones The financial newswire

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