Trump Declines Iran Talks, Oil Prices Rebound on Uncertainty
The price of oil rebounded on Thursday after US President Donald Trump stated that his administration was no longer interested in negotiating with Iran.
Trump's comments effectively dashed hopes for a resolution to the ongoing dispute over the Strait of Hormuz, which has been a major factor in oil prices. The news sent Brent crude up $1.86 to $89.70 per barrel and West Texas Intermediate up $1.30 to $83.53 per barrel.
Despite the increase in oil prices, there are still concerns about the stability of the Strait of Hormuz. Priyanka Sachdeva, head of market insights at Phillip Nova, warned that 'at the heart of the dispute remains Iran's nuclear programme and that is unlikely to be resolved quickly...'. She also noted that Iran understands the importance of its geographical position and the leverage it provides.
In other oil news, there are reports that Washington is in talks with Venezuela's interim government about acquiring a direct US ownership stake in key Venezuelan oil fields. This would give the US control over around 90 billion barrels of proven crude.