Oil Erases Losses, WTI Climbs Back Above $92 a Barrel
Summary
- International oil prices erased all intraday losses and turned higher, trading back above the $92-a-barrel level.
- Oil initially came under downward pressure on expectations of progress in U.S.-Iran negotiations, but later reversed course.
- Concerns over supply disruptions resurfaced as Iran asserted control over the Strait of Hormuz and warned of broader tensions, making it a key variable for global oil prices.
Forecast Trend Report by Period
International oil prices erased their intraday losses and turned higher, with the market closely watching U.S.-Iran talks and developments in the Middle East.
Walter Bloomberg reported on June 2 that West Texas Intermediate futures recovered earlier declines and traded back above $92 a barrel.
Oil had earlier come under pressure on expectations of progress in negotiations between the U.S. and Iran. President Donald Trump also said that day that oil prices would "soon fall like a rock."
Still, concerns about supply disruptions resurfaced after senior officials from Iran's Islamic Revolutionary Guard Corps and the government repeatedly asserted control over the Strait of Hormuz and warned that tensions could spread to the Bab el-Mandeb Strait.
The progress of U.S.-Iran talks and tensions surrounding the Strait of Hormuz could prove to be key drivers for global oil prices.
