Trump spoke, oil rose again

Volatility continues in the Brent crude oil market. In particular, the weakening of hopes that tensions in West Asia will ease and Donald Trump's latest statements to the press have been effective in the sharp rise in prices. The futures price of a barrel of Brent crude, which closed yesterday at 104.21 dollars, rose by 3.51 percent this afternoon to 107.87 dollars. West Texas Intermediate (WTI) crude oil similarly gained 3.57 percent in value, trading at 101.57 dollars.

US President Donald Trump's assessments regarding the ongoing ceasefire with Iran have once again increased tension in the markets. Trump revealed how fragile the process is by stating, "I can say that it (the ceasefire) is at its weakest point right now. It is on life support." He also described Iran's latest proposal as "stupid."

President Trump also pointed out that the Freedom Project operation, which was suspended some time ago to ensure the security of commercial maritime transport in the Strait of Hormuz, could be restarted.

Expectations that tensions will rise again in the region, where a significant portion of global oil reserves are located, are proving decisive in the upward movement of the markets. Experts state that prices have entered an upward trend as hopes for a lasting solution between the US and Iran weaken. According to analysts, while these risks originating from West Asia currently have a limited impact on the US economy, they could lead to more serious consequences in the future.

In economic circles, inflation data from the US is also being closely watched. This data is expected to shape expectations regarding the monetary policy strategies of the US Federal Reserve (Fed).

It is also estimated that President Trump's official visit to China this week will create new effects on energy markets and the global economy. The meeting to be held with Chinese President Xi Jinping on Thursday is at the center of the markets' focus, especially in terms of trade relations and energy flow.

In technical analysis, it is stated that the 107.95 dollar level should be monitored as resistance and 106.25 dollars as a support point for Brent crude oil.

News Source: 12punto