In the recent time, the oil prices fell by 1% on the prospect of augmented supply of Iranian crude following France’s president elevated hopes for an agreement amid Washington and Tehran, but the losses were constrained by sanguinity surrounding the U.S.-China trade deal. The Brent crude fell by 64 Cents, or 1.1%, to close at $58.70 per barrel, after striking a session high level of $60.17. The U.S. WTI (West Texas Intermediate) crude futures fell by 53 Cents, or 1%, settling at $53.64 per barrel. The oil prices crashed after Emmanuel Macron—France’s President—reported that preparations were underway for a summit between U.S. President Donald Trump and Iranian President Hassan Rouhani in the upcoming weeks to sort out about nuclear standoff.
In the last year, Trump discontinued from Iran’s 2015 nuclear deal with world powers, disputing that he wanted a better deal which restricted Iran’s atomic work and constrained its support for delegates in Syria, Yemen, Iraq, and Lebanon, and curtailed its ballistic missile program. In May, Trump also constricted sanctions on Iran to try to stop its oil exports. Phil Flynn—Analyst at Price Futures Group, Chicago—said, “Since the market is considering the prospect that we will experience a flood of Iranian oil coming into the market if a deal is obtained. We have to be indeed vigilant as we have seen deals that are just there for 1 Minute and down the next minute.”
Speaking of the oil market, recently, the toll of Trump’s trade battle started to show in the oil industry. President Trump has done much to back the U.S. gas and oil industry since moving to the White House in 2017, but his move toward to trade policy intimidates to undo much of the good. After the announcement of tariffs on additional $300 Billion worth of imports previously in this month, Trump soared the trade war with China. In its retaliatory action, Beijing in the last week came up with new taxes on $75 Billion of US goods, counting a 5% tariff on crude oil imports effective from September 1.