Trump’s words made the market nervous again! International oil prices rose in late trading

International oil prices rose slightly in late trading on Friday (6th). (Reuters)

[Financial Channel/Comprehensive Report] U.S. President Trump said that he will soon decide whether to push forward the peace agreement or destroy the remaining power of Iran. International oil prices rose slightly late on Friday (6th) as the market renewed concerns that the United States might launch further attacks on Iran.

Brent crude oil futures for January delivery closed at $98.32 a barrel, up 3 cents, or 0.03%.

U.S. West Texas Intermediate (WTI) crude oil futures in New York closed at $90.83 a barrel, up 31 cents, or 0.34%.

According to London Stock Exchange Group (LSEG) data since 1988, Brent crude oil fell 17% this week, which would be the largest weekly percentage decline since the outbreak of the new crown epidemic and the largest weekly decline in absolute terms; WTI crude oil fell 13% this week.

"What's happening now seems to be that the market is pricing in a little bit of the premium that was created because of the war," said Phil Flynn, senior analyst at Price Futures Group.

After the results of the U.S. midterm elections were released, the market held out hope that the war in Iran might cool down and crude oil exports from the region would increase. However, on the other hand, the election results also raised expectations that the United States might tighten regulations on the AI industry, leading to a sharp sell-off in technology stocks on Thursday (5th).

Janiv Shah, oil market analyst at Rystad Energy, said: "From a supply and demand balance perspective, the crude oil market is gradually moving towards oversupply, but the crude quality difference still exists because refineries have to try to get the crude oil they can process, rather than all the crude oil actually supplied on the market."

Shah pointed out that since shipping near the Strait of Hormuz is affected, operators must switch to longer routes and use ship-to-ship transshipment as an alternative. He went on to say: "The market is still waiting for strong evidence to confirm that Iran has officially signed an agreement; if there is a rebound or counterattack from either party, supply and demand fundamentals may tighten again."