After Trump made a call, oil prices crashed 5%!
Trump struck again—this time, oil prices dropped straight by 5%.
On September 22, the WTI crude oil futures November contract fell 5.00% intraday, trading at $91.27 per barrel; the front-month Brent crude oil futures contract dropped 4.07%, to $95.25 per barrel.
The spark is still the old familiar—Trump. He had previously said he was willing to meet with the Iranian president during the UN General Assembly. The market bet that this war between the US and Iran would not be able to carry on. Combined with reports that Saudi Arabia’s repaired oil pipeline damaged in an attack was progressing faster than expected, and that shipping volumes through the Strait of Hormuz hit a six-month high, supply concerns were being dismantled piece by piece. The geopolitical premium embedded in oil prices is evaporating rapidly.
Brent closed above $105 last week, but on Monday it broke below the $100 mark directly. Still, don’t get too excited—if negotiations fall apart, the premium could surge back at any moment.
Trump struck again—this time, oil prices dropped straight by 5%.
On September 22, the WTI crude oil futures November contract fell 5.00% intraday, trading at $91.27 per barrel; the front-month Brent crude oil futures contract dropped 4.07%, to $95.25 per barrel.
The spark is still the old familiar—Trump. He had previously said he was willing to meet with the Iranian president during the UN General Assembly. The market bet that this war between the US and Iran would not be able to carry on. Combined with reports that Saudi Arabia’s repaired oil pipeline damaged in an attack was progressing faster than expected, and that shipping volumes through the Strait of Hormuz hit a six-month high, supply concerns were being dismantled piece by piece. The geopolitical premium embedded in oil prices is evaporating rapidly.
Brent closed above $105 last week, but on Monday it broke below the $100 mark directly. Still, don’t get too excited—if negotiations fall apart, the premium could surge back at any moment.
