West Texas Intermediate (WTI), futures on NYMEX, are down 6% to near $90 in the European trading session on Monday, the lowest level seen in over two weeks.
The oil price clings to opening losses amid hopes that energy supply disruptions due to the prolonged closure of the Strait of Hormuz, a critical passage to almost 20% of global energy supply, will be fixed soon
Over the weekend, United States (US) President Donald Trump said in a post that an agreement with Iran towards a permanent resolution has been “largely negotiated”, which includes the opening of the Strait of Hormuz. However, in a later post, Trump said that there is “no rush for the Iran deal”, as time is on Washington’s side. He added, “The Blockade will remain in full force and effect until an agreement is reached.” Meanwhile, Iran has not confirmed any progress in negotiations with the US.
Oil prices rallied by over 68% in almost two weeks when the Middle East war started on February 28. They started cooling down after both Iran and the US confirmed a temporary truce, aiming to reach a permanent resolution, but they are still almost 35% since the onset of the war. WTI Technical Analysis The WTI US Oil trades lower at around $90.00 as of writing.