Trading Economics:
WTI crude oil futures fell over 1% to $73.37 per barrel on Wednesday morning at around 9:30 AM CT after rising to as high as $76 earlier in the session, as President Trump hinted at potential dialogue with Iran, easing fears of imminent conflict.
> While tensions remain elevated amid ongoing Iran-Israel hostilities, Trump declined to confirm plans for a US strike and said Iran had reached out for talks, though he called it "very late." This shift in tone softened earlier price gains driven by concerns over possible supply disruptions, especially via the Strait of Hormuz, a vital route for nearly a third of global seaborne oil.
> Despite easing prices, risk remains elevated, as Iran has warned it will retaliate if the US joins Israel’s military actions.
> In supply news, US crude inventories dropped sharply by 11.5 million barrels last week to 420.9 million, far more than expected.
At the time of this post WTI had come all the way back to $74.82.
I have no idea where it will end up today, but I think a $10 to $15 risk premium will hang around of awhile, probably several months.
Dan Steffens
Energy Prospectus Group |
