OIL: Crude sharpens its decline, Trump assures that the end of the war is ready

Oil prices ease on Wednesday in the hope of progress in peace negotiations, despite contradictory information from the Middle East.

US President Donald Trump said Tuesday he was confident in the chances of putting an end to the war with Iran “very quickly”. “We are going to end this war very quickly. They are so eager to make a deal, they are tired – this should have happened 47 years ago,” the leader declared during a meeting with members of Congress at the White House, reports the Wall Street Journal.

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

Around 5:10 p.m., the June contract on American crude WTI lost 3.6%, to $100.43. Brent lost 3.8% in London, to 107.08 dollars.

Signs of partial reopening of the Strait of Hormuz also contribute to the easing of prices. On Tuesday, two Chinese tankers carrying crude oil crossed the strait without incident. A South Korean ship also entered the strait, Reuters reported. It is “one of the most active days since the blockage”, reacted Jim Reid, analyst at Deutsche Bank.

The situation in the region could, however, fuel the volatility of the oil market, while Iran’s chief negotiator, Mohammad Ghalibaf, for his part accused the United States of “seeking to start a new war”, reports AFP. The President of the Iranian Parliament also warned that Tehran was ready for a “strong response” in the event of a new attack, according to AFP.

Also in the news, investors learned of a significant drop in crude oil stocks last week in the United States. Reserves fell by 7.86 million barrels, to 445.01 million barrels, according to figures from the US Department of Energy. Gasoline stocks also fell by 1.55 million barrels, to 214.16 million barrels.

Agefi-Dow Jones The financial newswire

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