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▲ US refinery facility |
International oil prices closed higher.
Although U.S. President Donald Trump said he preferred resolving the Iranian nuclear issue through dialogue, oil prices jumped following reports that a second U.S. aircraft carrier strike group is preparing to depart for Iran.
U.S. refinery facility
On the 11th (U.S. Eastern time), West Texas Intermediate (WTI) crude for March delivery rose $0.67 (1.04%) from the previous session to close at $64.63 per barrel on the New York Mercantile Exchange.
Trump posted the outcome of his private meeting with Israeli Prime Minister Benjamin Netanyahu at the White House on his Truth Social account.
In the post, Trump said, “Nothing has been decided other than my emphasis on continuing negotiations with Iran to see if we can reach a deal,” adding, “I told the prime minister that if a deal is possible, I would prefer it.”
He added pressure by saying, “If a deal is impossible, we’ll have to see what happens,” and, “Last time, when Iran decided it was better not to reach a deal, it was hit with ‘Midnight Hammer.’”
“Midnight Hammer” refers to a military operation conducted last June in which U.S. forces carried out surprise strikes on three Iranian nuclear facilities and destroyed air defense systems.
Trump’s indication that he preferred dialogue in dealing with Iran put downward pressure on oil prices during the session. Crude prices, which had surged nearly 3% intraday, trimmed gains to around 1%.
However, reports that the U.S. military is preparing to dispatch a second carrier strike group targeting Iran sustained the overall bullish sentiment.
Tamas Varga, an analyst at PVM Oil Associates, said, “There are occasional rhetorical offensives, but for now there are no signs of escalating tensions,” adding, “I believe the U.S. president hopes Iran will ultimately agree to nuclear negotiations.”
Meanwhile, according to the U.S. Energy Information Administration (EIA), U.S. commercial crude oil inventories rose by 8.53 million barrels in the week ending on the 6th. Market expectations had been for an increase of 800,000 barrels.
Disclaimer: This article is provided for informational purposes only and does not constitute investment advice.