Crude oil prices have significantly increased in recent hours. This rise is due to the movement of the storm "Isaias" towards the northern part of the Gulf of Mexico and the halt in crude oil production in U.S. waters. At the same time, Donald Trump's statements regarding negotiations with Iran and the facilitation of Russian diesel imports have impacted the energy market.
Fluctuations in Oil Prices and Influencing Factors
Brent crude oil closed on Friday with an increase of 44 cents, equivalent to 0.42%, reaching $104.72 per barrel. Additionally, West Texas Intermediate crude oil also rose by 36 cents, equivalent to 0.39%, trading at $91.85 per barrel. Meanwhile, oil prices have experienced significant fluctuations this week, particularly due to threats against shipping in the Persian Gulf and the Strait of Hormuz, which before the war accounted for about 20% of the world's oil and fuel shipments.
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Thomas Varga, an analyst at PVM Oil Associates, stated that Trump's promises regarding Iran and the resumption of China's petroleum exports are among the factors pushing prices downward. Additionally, China's plan to resume petroleum exports after the Golden Week holiday has put downward pressure on the market.
Trump's Talks with Iran and Russia
Donald Trump announced on Thursday that Washington is engaged in "constructive talks" with Iran and emphasized that no attack is on the agenda before the U.S. midterm elections on November 3. These statements came following reports suggesting the possibility of a U.S. attack on Iran before the elections. Nevertheless, the U.S. continues to exert economic pressure on Iran, imposing sanctions on individuals, networks, and 17 vessels related to the transfer of Iranian crude oil and petroleum products.
Trump also announced that Russia has agreed to supply diesel to global markets to reduce fuel prices. The U.S. government has temporarily eased restrictions on Russian diesel imports. This decision was made particularly as diesel prices in the U.S. and global markets have risen due to supply disruptions.
Trump added that during a conversation with Vladimir Putin, the President of Russia, it was agreed that Russia would immediately supply over 300,000 tons of diesel to the U.S. market and other global markets. This agreement was announced as oil producers in the Gulf of Mexico have halted about 1.3 million barrels per day, equivalent to 62.9% of the current oil production in the region, due to the Isaias storm.
Overall, these developments have not only impacted oil prices but have also raised concerns about oil supply. Given that oil companies have halted over 70% of crude oil production in U.S. waters, the future of the oil market faces serious challenges.
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