Oil prices fell after reaching a three-year high in the previous session. Brent futures dropped $4.17 or 4.2pc to $94.79 a barrel in early trade. US West Texas Intermediate crude fell $3.81 or 4pc to $90.96 a barrel.
Prices had surged past $100 a barrel the day before due to supply cuts and conflict fears.The all-time record high stands at near $147 per barrel in July 2008. Oil droppes to a negative price per barrel in 2020 during the COVID-19 pandemic. Current surge links to geopolitical issues in the Middle East.
Markets reacted to Donald Trump sharing “I think the war against Iran is very complete and that Washington was very far ahead of my initial four to five-week estimated timeframe.”
Suvro Sarkar shared “Clearly Trump’s comments about a short-lived war has calmed markets. While there was an overreaction to the upside yesterday, we think there is an overreaction to the downside today.”
Priyanka Sachdeva shared “Discussions around easing sanctions on Russian oil, comments from Donald Trump hinting that the conflict could eventually de-escalate, and the possibility of G7 countries tapping strategic oil reserves all pointed to the same message – that oil barrels will somehow continue to reach the market.”
