Oil price sinks to $65 af­ter Trump’s speech

The Punch - - ENERGY - ’Femi Asu with agency re­port

oIl prices plunged on Wednesday af­ter Pres­i­dent Don­ald Trump said Iran “ap­pears to be stand­ing down” in the Mid­dle East and that the United States would im­pose sanc­tions on Iran in­stead of an­other mil­i­tary strike as feared by some in­vestors.

The In­ter­na­tional oil bench­mark, Brent crude, which was trad­ing around $68 ear­lier in the day, fell to $65.39 per bar­rel as of 8:20 pm Nige­rian time.

Brent, which rose above $70 per bar­rel on Mon­day, gave up all its gains for the year on Wednesday.

The US West Texas In­ter­me­di­ate crude dropped by 5.2 per cent to $59.45, its first time be­low $60 a bar­rel since De­cem­ber 16 and on track for its steep­est daily de­cline since Septem­ber 17, ac­cord­ing to CNBC.

Trump’s com­ments on Wednesday came af­ter Iran’s rocket at­tack on Amer­i­can forces in Iraq failed to de­stroy ma­jor en­ergy in­fra­struc­ture that could have dis­rupted global crude sup­ply.

Trump also con­firmed in his White House speech that no Amer­i­cans were harmed dur­ing the bomb­ing.

Iran launched more than a dozen bal­lis­tic mis­siles against mul­ti­ple mil­i­tary bases housing the US troops in the early hours of Wednesday morn­ing, ac­cord­ing to Pen­tagon of­fi­cia

Though Trump promised the US would re­spond to Iran’s at­tack with “pun­ish­ing eco­nomic sanc­tions,” traders took the news as more dovish and a move to­ward de-es­ca­la­tion.

Mean­while, the United Arab Emi­rates En­ergy Min­is­ter Suhail al-mazrouei told Reuters ear­lier on Wednesday that he saw no im­mi­nent risk to oil pass­ing through the crit­i­cal Strait of Hor­muz.

He added, “We will not see a war,” he said from UAE cap­i­tal Abu Dhabi. He added, “This is def­i­nitely an es­ca­la­tion be­tween the United States, which is an ally, and Iran, which is a neigh­bour, and the last thing we want is more ten­sion in the Mid­dle East.”

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