Oil prices rose Thursday after President Donald Trump said the U.S. does not need a deal with Iran. Brent and WTI both gained, while analysts at ING expect volatility to remain elevated.
Oil prices popped Thursday after Trump's latest comments raised worries that an end to the U.S.-Iran war was not in sight.
Brent and WTI climb after Trump's Iran remarks
Brent crude traded 1.6% higher at $94.25 per barrel, according to CNBC. West Texas Intermediate futures gained 1.3% to trade at $87.62 per barrel.
According to CNBC, Trump said in a Truth Social post: "We don’t need a deal with Iran."
Investing.com reported smaller gains as of 08:27 ET. Brent futures jumped 1.0% to $93.68 a barrel, while WTI gained 0.6% to $87.14 a barrel. Brent has surged by more than 50% so far this year, but has fallen sharply in recent days.
Neither side appears to have moved
Andy Lipow, president of Lipow Oil Associates, said it does not seem to him that either side's negotiating position has changed. In his reading, Iran wants the blockade to end, sanctions to be lifted and a ceasefire including Lebanon to be declared. The U.S. wants Iran to get rid of its entire nuclear stockpile and allow free transit through the Strait of Hormuz, he said.
Meanwhile, supply from the region has been recovering. Saudi Arabia told the Organization of the Petroleum Exporting Countries (OPEC) that its oil output climbed by 26% in October to 10.56 million barrels per day, according to Investing.com.
Still, ongoing attacks on tankers in the Strait of Hormuz have kept alive the prospect of future disruptions. Analysts at ING said in a research note that they expect volatility to remain elevated, with the pace of normalization through Hormuz still the key driver for the outlook.
Sources: CNBC, Investing.com
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