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Donald Trump Hammers Crude Oil Prices

Summary:
Markets were generally in a risk-on mode today, leading to gains of riskier assets. Yet one could not say that looking at prices for crude oil, which were sinking on Monday. Usually, crude rallies during times of risk appetite, but that was not the case today. So what was the reason for that? Most market analysts thought that it was a single tweet. Specifically, the tweet from US President Donald Trump urging the Organization of Petroleum Exporting Countries to prevent oil prices from rising too high: Oil prices getting too high. OPEC, please relax and take it easy. World cannot take a price hike – fragile! — Donald J. Trump (@realDonaldTrump) February 25, 2019 Some analysts were arguing with such point of view, saying that just one comment cannot lead to such a big decline. Whatever

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Markets were generally in a risk-on mode today, leading to gains of riskier assets. Yet one could not say that looking at prices for crude oil, which were sinking on Monday. Usually, crude rallies during times of risk appetite, but that was not the case today. So what was the reason for that? Most market analysts thought that it was a single tweet. Specifically, the tweet from US President Donald Trump urging the Organization of Petroleum Exporting Countries to prevent oil prices from rising too high:

Some analysts were arguing with such point of view, saying that just one comment cannot lead to such a big decline. Whatever the case really is, prices dropped about 3% today.

Contract for delivery of WTI crude oil dropped 2.95% to $55.57 per barrel as of 19:27 GMT on NYMEX today. Brent crude dropped as much as 3.16% to $65 per barrel on ICE.


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Vladimir Vyun
Vladimir is an online journalist with background in computer science and work experience in pension funds. He contributes news reports, fundamental analysis and sentiment forecasts to TopForexNews.com and CommodityBlog.com. His main specialization is the currencies of emerging economies and inter-market correlations with commodity and bond trading.

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