As FOX News reported on Sunday, US President Donald Trump said that the war in Iran would soon end and the United States would be victorious. His comments came as Trump recalled a delegation to Pakistan to potentially talk directly with Iran.
Key quotes
This incident won’t stop me from winning the Iran war.
The war in Iran will soon end and we will be victorious.
If Iran wants to talk, they can call us.
We will do this by phone.
Some of the people we deal with on Iran are reasonable, others are not.
I hope Iran is intelligent.
NATO did not support us on Iran.
As part of the talks, we will seize Iranian nuclear material.
I’m not too disappointed with China, I could have done more.
It could have been much worse in China.
Hold talks with Putin and Zelensky on Ukraine.
Market reaction
At the time of writing, the West Texas Intermediate Index (WTI) is up 1.25% on the day at $94.30.
Frequently asked questions about WTI crude oil
WTI Oil is a type of crude oil sold on international markets. WTI stands for West Texas Intermediate, one of three main types, including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” due to its relatively low weight and low sulfur content. It is considered a high-quality oil that can be easily refined. It originates in the United States and is distributed through the Cushing Junction, considered the “Crossroads of the World.” It is a reference point for the crude oil market, and the WTI price is often quoted in the media.
Like all assets, supply and demand are key factors influencing the price of WTI crude oil. Therefore, global growth may drive increased demand and, conversely, frail global growth. Political instability, wars and sanctions can disrupt supply and affect prices. Another key factor shaping prices are the decisions of OPEC, the group of major oil-producing countries. The value of the US dollar affects the price of WTI crude oil because oil is mainly sold in US dollars, so a weaker US dollar can make oil more affordable and vice versa.
Weekly crude oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Administration (EIA) influence the price of WTI crude oil. Inventory changes reflect fluctuations in supply and demand. If the data shows a decline in inventories, it may indicate increased demand, which will result in an escalate in the price of oil. Higher inventories may reflect increased supply, which causes prices to fall. The API report is published every Tuesday and the EIA report the following day. Their results are usually similar and are within 1% of each other 75% of the time. EIA data is considered more reliable because it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 oil-producing countries that jointly decide on production quotas for member countries at meetings held twice a year. Their decisions often influence the prices of WTI crude oil. When OPEC decides to cut quotas, it can tighten supply, which will push up oil prices. OPEC increasing production has the opposite effect. OPEC+ refers to an expanded group that includes ten additional non-OPEC members, the most notable of which is Russia.
