"I don't care if negotiations with Iran are over": US President Trump claims indifference to rising Oil price

Agustin Wazne FXStreet

United States (US) President Donald Trump stated on Monday that he is unconcerned about the future of negotiations with Iran, saying, "I don't care if negotiations with Iran are over," during an interview with CNBC. Trump also claimed that talks are continuing, at a rapid pace, with the Islamic Republic of Iran on his Truth Social account.

Key takeaways:

I don't care if negotiations with Iran are over.

I'm not worried about Oil prices if Iran blocks the Strait of Hormuz.

I had a very productive call with Prime Minister Bibi Netanyahu.

There will be no troops going to Beirut, and any troops that are on their way have already been turned back.

Through highly placed representatives, I had a very good call with Hezbollah, and they agreed that all shooting will stop.

WTI Oil FAQs

What is WTI Oil?

WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.

What factors drive the price of WTI Oil?

Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.

How does inventory data impact the price of WTI Oil

The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.

How does OPEC influence the price of WTI Oil?

OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.

Author

Agustin Wazne

FXStreet

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

GBP/USD bounces to 1.3550 on USD retreat

GBP/USD rebounds to test 1.3550 at the start of a new week, reversing a part of Friday's heavy losses to over a one-week trough. The pair draws support from renewed US Dollar weakness, but lacks bullish conviction amid looming US-Iran geopolitical risks.

EUR/USD edges higher to near 1.1600 ahead of German CPI data

EUR/USD gathers strength to near 1.1600 in European trading hours on Monday. The US Dollar pulls back despite hawkish remarks from Federal Reserve Chair Kevin Warsh. Traders will now take cues from the preliminary reading of Consumer Price Index inflation data from Germany, which is due later on Monday.

Gold holds recovery near $4,450; still cautious

Gold holds its recovery near $4,450 in the European session on Monday, moving away from sub-$4,400 levels, though the upside potential seems limited. A softer US Dollar offers some support to the precious metal and helps recover its intraday losses. Meanwhile, Fed Chair Kevin Warsh's comments on curbing inflationary pressures on Friday lifted bets for a rate hike, which might keep a lid on any meaningful recovery for the non-yielding bullion.

Dogecoin whales take profits as rally loses momentum

Dogecoin trades near key support around $0.081 after declining more than 12% last week. On-chain data suggests some whale wallets are taking profits after DOGE’s recent surge. Meanwhile, derivatives data points to mild underlying strength, while technical indicators suggest bullish momentum is losing strength, leaving the meme coin’s near-term outlook mixed.

Iran’s IRGC claims it shot down US drone, attacked UAE air base

Iran’s Islamic Revolutionary Guard Corps (IRGC) shot down a US MQ-9 drone over the Strait of Hormuz using air defense missiles, causing it to crash into Gulf waters, Mehr news agency reported on Monday.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.