Oil Holds Steady, Market Awaits Trump Move
Oil held steady after a volatile week of trading as markets focused on whether President Donald Trump would drag the U.S. into a conflict between Israel and Iran, which has raised concerns about supply disruptions.
West Texas Intermediate prices neared $75 a barrel after closing slightly higher on Wednesday, while Brent closed below $77. Prices have fluctuated in a range of about $8 this week, with volatility surging, options turning more bullish and key spreads widening significantly in backwardation.
Trump wrapped up a meeting Wednesday with top advisers, but the White House gave few clues about whether he has decided the U.S. will join a strike to destroy Tehran’s nuclear program. Iran’s foreign minister said the OPEC producer remains committed to diplomacy.
When asked later in the day whether he was moving closer to bombing Iran, Trump said, “I might do it. I might not do it.” The Wall Street Journal reported that the president approved plans for a military strike earlier in the week but held off on final authorization as he weighed whether Tehran would meet his demands.
The biggest concern for oil markets centers on the Strait of Hormuz, but so far there are no signs that Tehran is trying to disrupt shipping through the narrow waterway at the entrance to the Persian Gulf. About a fifth of the world’s crude output passes through the strait.
WTI for July delivery, which expires Friday, was little changed at $75.29 a barrel at 7:14 a.m. in Singapore.
Brent for August settlement closed 0.3% higher at $76.70 a barrel on Wednesday.
Source: Bloomberg
