Trump's oil price push: WTI dips as tensions with Iran rise
On the New York fuel exchange, oil prices are falling following a series of increases. These rates are influenced by decisions made by U.S. President Donald Trump. According to the investment bank Goldman Sachs, he prefers West Texas Intermediate (WTI) crude oil prices to be within the $40-50 per barrel range.
Oil prices on the New York fuel exchange are declining after four days of increases. A barrel of West Texas Intermediate oil for June deliveries currently costs $63.36, marking a decline of 0.49 percent. Meanwhile, Brent oil for July is priced at $66.27 per barrel, a decrease of 0.54 percent after a previous rise of nearly 10 percent.
The White House believes these rates are too high. Analysts at Goldman Sachs assess that President Donald Trump prefers WTI oil prices to be between $40 and $50 per barrel.
Daan Struyven from the investment bank notes that the American president frequently comments on oil and U.S. energy matters on social media, impacting the market.
Struyven points out that Donald Trump has consistently prioritized oil and U.S. energy dominance, as evidenced by his nearly 900 related posts. What real impact does this have on raw material prices?
Pressure on Iran draws attention
Trump announced that the United States will exert maximum pressure on Tehran regarding oil exports, which could potentially lead to a complete halt if an agreement on Iran's nuclear program is not reached.
Warren Patterson from ING Groep NV assesses that U.S. sanctions threats against Iran may support oil price increases. However, when the topic of U.S. tariffs quiets down, investors may focus on the supply of raw materials from OPEC+ countries and their plans to increase deliveries.
The WTI oil price, currently slightly over $63 per barrel, has fallen by about 12 percent this year. Economists believe this decline is partly due to U.S. tariff policy and OPEC+ countries' unexpectedly early decisions to plan increased production.
