Fuel market reacts to Trump's words
Crude oil prices rose on Monday in response to Donald Trump's post rejecting the United States' Iranian peace terms in the Middle East.
"I just read the response from the so‑called Iranian representatives. I don't like it — it's completely unacceptable", the post on Truth Social read.
The Wall Street Journal reports that the main obstacle in negotiations is Tehran's lack of agreement to limit the development of its nuclear program at the pace imposed by Washington.
More on this was written in the article: Dollar rate changes direction. Trump rejects Iran's proposals
Amin Nasser, CEO and Managing Director of the Saudi oil and chemical conglomerate Saudi Aramco, said that if the oil and gas supply blockade continues, the fuel market will not return to normal until 2027.
The tense situation in the Strait of Hormuz since late February could cause the biggest supply shock in history on the market, warns among others the International Energy Agency (IEA).
"Although optimism about a quick agreement is fading, there remains a spark of hope that talks between Trump and Chinese President Xi, scheduled for the end of this week, could bring positive results on Iran," analysts from ING Think said.
"There is hope that China can use its influence on Iran to bring it closer to a peace agreement. Of course, it's easier to say than to do", they added.
Economists reminded that China’s crude oil imports in April fell 20% year‑on‑year, reaching a level of 9,4 million barrels per day.
"This is the lowest level since July 2022, when strict pandemic restrictions were in place. At the same time, natural gas imports in the month fell 13% year‑on‑year", the report said.
The team emphasized that the "crude oil market is still largely influenced by media reports, and prices spiked sharply after President Trump rejected Iran's latest peace plan proposal".
"One could expect the market to become increasingly tired of a flood of news and constant twists. However crude prices remain very sensitive to Iran news, highlighting the importance of ongoing supply disruptions in the Persian Gulf", we read in the statement.
Read also: Fuel prices plunged after Trump's words. Attacks on Iran were halted. "I instructed the Department of War"
See also: Gold price fell 12%, further discount soon? Expert: "With possible de‑escalation there is a chance to make up for losses"
Crude prices climb higher
Brent futures on Monday, May 11, recorded a jump of 2,55% to 103,87 USD per barrel.
Spot crude rose almost 5% to 106 USD per barrel before falling.
Chart. Brent futures price
Source: Trading Economics.
WTI futures hover around 97,7 USD per barrel after a rise of 2,45%.
Chart. WTI (West Texas Intermediate) futures price
Source: Trading Economics.
Read also: Fuel prices will surprise Polish drivers! Gasoline and diesel will change direction - expert says
See also: Fuel prices in Poland will rise, shortages at stations? Expert: "It won't be a one‑off sharp move affecting drivers"
Sources: Truth Social, The Wall Street Journal, ING Think.
