Crude oil prices fall sharply after Trump’s predictions about the end of the war in the Middle East

On Tuesday, March 10, crude oil prices began to fall after reaching record highs in the past three years. The market calmed down amid statements by the US president about the imminent end of the war in the Middle East, which dispelled investors’ fears about the long-term destabilization of global supplies.

Brent crude oil futures lost more than $4, falling to $94.79 per barrel. American WTI crude oil also showed a decline, stabilizing at $90.96 per barrel.

The main reason for the reversal of the price trend was the statements of US President Donald Trump about the prospects for an end to the military conflict in the Middle East. The American leader’s predictions about a quick settlement of the situation around Iran somewhat reassured investors.

An additional factor was the report of a telephone conversation between Donald Trump and Putin, during which proposals were discussed to accelerate the way out of the crisis.

The market reacted to this news by reducing the so-called “risk premium”, which previously pushed prices up.

Despite the reassuring comments from Washington, the situation in the physical market remains tense.

Analysts note that real crude oil prices in the Middle East region are still at high levels. In addition, representatives of the Islamic Revolutionary Guard Corps of Iran have made tough statements.

Tehran has threatened to completely block energy exports from the region if the attacks on the country continue. This creates the basis for maintaining volatility on the stock exchanges in the near future.

Pressure on prices is also due to information about the preparation of a package of measures to stabilize the world market.

Donald Trump is considering options for easing crude oil sanctions against Russia and using emergency strategic reserves of crude oil. The G7 countries have confirmed their readiness to take the necessary steps to counteract the growth of energy costs.

Traders took these signals as confirmation that world leaders would try to ensure the uninterrupted flow of crude oil to the global market under any conditions.

Tags: prices