Global oil prices ease nearly 1 pc after Trump hints at Iran deal
New Delhi, May 20
Global crude oil prices fell nearly 1 per cent for a second consecutive session on Wednesday after US President Donald Trump reiterated that the conflict with Iran could end "very quickly", raising hopes of a possible diplomatic breakthrough.
International benchmark Brent crude futures slipped 0.9 per cent or nearly $1 to $110.28 per barrel, while US West Texas Intermediate (WTI) crude futures declined about 1 per cent or $1.03 to $103.12 per barrel.
Moreover, both benchmarks had already fallen nearly $1 in the previous session following signs of progress in talks between Washington and Tehran.
According to experts, the near-term bias in oil prices remains cautiously bullish amid ongoing developments in West Asia.
However, markets remained cautious due to uncertainty surrounding peace negotiations and continuing disruptions to oil supplies from the region.
Investors are closely monitoring whether the US and Iran can reach common ground and secure a lasting peace deal, especially as Washington's stance has appeared inconsistent in recent days.
Speaking at the annual Congressional Picnic, Trump said the conflict with Iran would end "very quickly" and that Tehran wanted "to make a deal so badly".
He also predicted a sharp decline in global crude oil prices, citing abundant supply in the market. According to Trump, oil prices are likely to fall significantly in the coming weeks due to excess availability.
"There's so much oil out there, prices are going to fall sharply," Trump said, while reiterating that the conflict would be resolved soon.
He added that Iran was keen to strike a deal with Washington.
Meanwhile, global brokerage Citigroup expects Brent crude prices to climb to $120 per barrel in the near term.
Morgan Stanley described the oil market as being in "a race against time", warning that the factors currently limiting price gains could weaken if the Strait of Hormuz remains shut into June.
The brokerage noted that higher US crude exports and softer Chinese imports have helped cushion the market from a deeper supply shock so far.
— IANS
Reader Comments
Finally some relief for the common man! Petrol and diesel prices have been skyrocketing in India lately. I hope this leads to a cut at the pump here too, and not just more taxes by the government. 🤞
As someone who trades commodities, I think this is just a temporary dip. Morgan Stanley's warning about the Strait of Hormuz being shut into June is concerning—that would spike prices globally. India especially needs to diversify its oil imports away from volatile regions.
Trump says one thing, but his administration's actions speak louder. The US has been unpredictable on Iran. For India's sake, I hope a deal happens soon—our economy can't handle $120/barrel crude. The government should also boost renewable energy to reduce this dependency.
It's frustrating how global geopolitics determines our fuel prices at the pump here in India. One statement from Trump and prices move $1, but we never see similar drops locally. Need more transparency in Indian fuel pricing. 😤
As an economics student, I find this fascinating. The market's reaction shows how fragile supply chains are right now. If Iran deal happens, we could see oil below $100 soon—great for India's fiscal deficit! But the Strait of Hormuz risk is real. Let's hope diplomacy wins.
J