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Brent: Volatility eases after Trump comments – Deutsche Bank

Deutsche Bank’s Jim Reid and his team describe an extreme reversal in Brent Oil, with prices falling from an intraday high near $120 to around $90. They note lingering geopolitical uncertainty around Iran, potential G7 reserve releases, and Saudi Arabia’s production cuts, while longer-dated December 2026 Brent futures remain anchored below spot levels.

Extreme intraday swings and policy watch

"The past 24 hours has seen a dramatic roundtrip in oil markets as the seismic moves seen as we went to press yesterday gave way to increased optimism as President Trump suggested in the US afternoon that the war with Iran could be over “very soon”. That eased concerns over a longer-term conflict that could trigger a major stagflationary shock and helped drive a turn lower in oil markets."

"Most notably, Brent crude oil prices pulled back from an intraday peak of $119.50/bbl before the European open to around $90 by the US close..."

"It even briefly traded as low as $83.66 late in the US session, which marks the largest daily nominal trading range since the start of the intra-day Bloomberg data in the 1980s when oil futures begun."

"The lingering uncertainty has seen oil prices tick slightly higher overnight, with Brent crude up to $93.56 from around $90 at the US close yesterday, though that’s still below the $99.40 level they were before the CBS report yesterday evening and some 25% below yesterday’s intra-day highs."

"Remember that the oil moves have been much more contained further out the futures curve, with December 2026 Brent futures currently trading at $74.95/bbl."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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