Oil prices have fallen back after a sharp rise
10 March 10:23
Global oil prices fell after previously jumping to a three-year high. This was reported by Reuters, according to "Komersant Ukrainian".
Brent crude oil futures fell by $4.17 (4.2%) to $94.79 per barrel.
US West Texas Intermediate crude oil lost $3.81 (4%) and traded at $90.96 per barrel.
During trading, the decline was even more dramatic — both contracts temporarily fell by almost 11%, but later partially recovered their losses.
Before that, oil exceeded $100.
Prices had risen sharply the day before.
On March 9, a barrel of oil exceeded $100 for the first time since mid-2022.
The reasons were:
- a reduction in supplies from Saudi Arabia and other producers
- fears of supply disruptions
- escalation of the war between the US, Israel, and Iran
On Monday, prices jumped more than 25%, one of the sharpest market reactions in recent years.
The market was calmed by Trump’s statements
One of the reasons for the price decline was statements by US President Donald Trump, who said that the war with Iran could end sooner than expected.
According to him, the conflict is “almost over” and events are developing much faster than initial forecasts.
An additional signal to the market was Trump’s phone call with Russian President Vladimir Putin, during which the Kremlin offered ideas for a quick resolution to the conflict.
DBS Bank analyst Suvro Sarkar noted that Trump’s comments helped calm the markets.
Iran threatens to cut off oil exports
Despite this, the situation in the Middle East remains tense.
Representatives of the Islamic Revolutionary Guard Corps stated that Iran would determine when the war would end.
Tehran also warned that if the US and Israeli strikes continue, “not a single litre of oil” will be exported from the region.
Such statements maintain a high level of risk in the energy market.
Sanctions and strategic reserves
Another factor contributing to the decline in prices was the news that the Trump administration is considering easing oil sanctions against Russia.
- is considering easing oil sanctions against Russia
- may use strategic crude oil reserves to stabilize the market.
Phillip Nova analyst Priyanka Sachdeva explained that panic in the market began to subside as soon as traders realized that the main supply routes could remain open.
G7 response
The Group of Seven countries said they were ready to take the necessary measures in case of further price increases.
At the same time, the G7 countries have not yet committed to immediately releasing strategic oil reserves.
