The price of oil jumps 1% on the fall of US stocks

The price of oil increased 1% during early trading today, Wednesday, continuing to enhance its gains for the second day.

This comes with investors’ evaluation of a new round of sanctions on Iran, decreased crude stocks in the United States, and US President Donald Trump’s decline in the tone of the threat towards the Federal Reserve (Central Bank).

The market received support after Trump retracted on Tuesday from his threats to dismiss the President of the Federal Reserve, Jerome Powell, after he was criticized for a few days for not lowering interest rates. Trump also indicated the possibility of reducing customs duties on China.

Oil prices today

By 0407 Abu Dhabi time, Brent crude futures rose 61 cents, or 0.9%, to $ 68.05 a barrel, while the price of US West Texas Intermediate crude reached $ 64.27 a barrel, an increase of 60 cents or 0.94%.

Sanctions on Iran

On Tuesday, the United States imposed new sanctions targeting the Iranian natural gas pole, Sayyid Asadallah, Imam Jumaa, and his commercial network.

The Treasury said in a statement that the Imam Jumaa Network is responsible for charging quantities of hundreds of millions of dollars of liquefied oil and crude oil from Iran to foreign markets.

American stocks decline

At the same time, market sources said yesterday, quoting the data of the American Petroleum Institute, that crude oil stocks in the United States decreased by about 4.6 million barrels last week.

US government data on oil stocks are scheduled to be issued at 10:30 am EST (1830 Abu Dhabi time) today, Wednesday.

And analysts, Reuters, expected their views to decrease US crude stocks 800,000 barrels on average over the past week.

Negotiations with China

Trump told reporters on Tuesday that he would be very nice in negotiations with China and that customs duties on the goods from them would decrease significantly after reaching an agreement, but not to zero.

US Treasury Secretary Scott Besent said he believed that trade tension between the United States and China will decline, but negotiations with Beijing have not started and will be “strenuous.”

These statements conveyed a source listened to a special offer made by Besent in front of investors at the JP Morgan conference.

Customs duties were pressured on crude futures, with investor concerns increasing the slowdown in the global economy.