WTI plummets below $60 following US Pres. Trump's remarks on Iran conflict
- US Pres. Trump says US is ready to embrace peace.
- Crude oil prices fall sharply following earlier upsurge.
- Crude oil stocks in US rose unexpectedly in week ending January 3rd.
Crude oil prices came under heavy selling pressure in the last hour after US President Donald Trump took the high road in US-Iran conflict. As of writing, the barrel of West Texas Intermediate (WTI) was trading at $59.90, losing 4.4% on a daily basis.
De-escalation of tensions in Middle East weigh on oil
In his prepared statement on Wednesday, President Trump acknowledged that no Americans were harmed from Iranian missile strikes on US bases in Iraq and said Iran was appearing to be standing down. "The US is ready to embrace peace with all who seek it," Trump added.
Earlier in the day, the initial market reaction to reports of Iranian missile strikes caused the WTI to jump to its highest level since April at $65.62 on heightened concerns over supply disruptions.
In the meantime, the weekly report published by the US Energy Information Administration showed that crude oil inventories in the US rose by 1.2 million barrels in the week ending January 3rd, compared with analysts' expectation for a draw of 3.5 million barrels, and put additional weight on crude oil prices.
Technical levels to watch for