Oil gains due to international developments

Brent crude oil was starting this week at just over 58 dollars per barrel, but was attacking 59 dollars on Tuesday

WTI crude has made similar gains. Analysts say that this rise has been caused by market optimism resulting from last weekend’s G7 meeting and the signals that were send both by countries attending and not attending. Most notably, president Trump was both fairly optimistic on reaching a trade deal with China and also surprised many by stating that he is willing to negotiate with Iran if the circumstances are right.

Unfortunately such optimism may be fleeting. Iranian president has already stated that Iran will not negotiate with United States until all sanctions are lifted. Such a precondition is almost certainly unacceptable for the current administration. Therefore, a breakthrough in US-Iran relations is very unlikely. Because of these and other factors, it is very probably that oil will continue to fluctuate with considerable volatility.


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