Brent oil prices rose in early Monday trading as traders reacted to the latest developments in negotiations between Iran and the US, after the American President rejected Tehran’s proposal. As has happened over previous weekends, hopes for a realistic path towards normalisation in the Persian Gulf were promoted by the US administration on Friday, leading to a fall in oil prices, only for the President to use social media on Sunday to temper those expectations again, resulting in higher prices on Monday. The latest developments mean that the Strait of Hormuz effectively remains closed, keeping most of the oil and gas produced in the region, approximately 20% of global output, off the market. Against this backdrop, Brent prices are likely to remain above $100, with traders continuing to focus on the progress of diplomatic exchanges between the US and Iran, as the hopes and setbacks generated by these negotiations remain, for now, the main drivers of oil prices.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Forecasts are not guarantees. Rates may change. Political risk is unpredictable. Central bank actions may vary. Platforms’ tools do not guarantee success.