Oil prices experienced a downturn as geopolitical concerns diminished, offsetting earlier gains driven by unrest and political turmoil. Market sentiment shifted due to signals of potentially delayed military action against Iran and renewed engagement with Venezuela, alongside a significant increase in U.S. crude inventories.
- WTI crude oil futures fell about 3% to around $60.1 per barrel.
- President Trump indicated a potential delay in military action against Iran.
- Trump received assurances that the killing of protesters in Iran would stop.
- Iran temporarily closed airspace around Tehran.
- The US is adjusting the deployment of personnel at regional bases.
- Earlier gains were due to unrest in Iran and political turmoil in Venezuela.
- Trump pointed to renewed engagement with Venezuela, adding uncertainty around future crude flows.
- US crude inventories posted their largest weekly build in months.
The easing of geopolitical tensions and the rise in US crude inventories have created downward pressure on oil prices. The potential delay of military action and renewed talks with Venezuela introduce uncertainty regarding future supply, while the increase in US reserves suggests ample availability. These factors are contributing to a cautious market outlook for oil.