What a frustrating time to be a giant oil and gas company. Somehow, despite President Donald Trump's war against Iran bringing about the greatest oil supply shock of all time, trapping 10% of global supply behind the Strait of Hormuz, oil prices topped out at only $111 per barrel in early April.
With geopolitical risk premium largely removed, oil benchmarks faced renewed selling pressure while natural gas showed resilience. WTI confirms bearish breakdown targeting $70.82, Brent tests channel floor at $76.32, and NatGas holds $3.154.
Oil prices fell as concerns over disruptions to shipping through the Strait of Hormuz eased. Trump urged a DOJ probe into fuel prices, accusing oil companies of gouging consumers.
U.S. President Donald Trump said on Wednesday that he has instructed the Department of Justice to look into oil companies for not lowering pump prices in line with falling crude costs.
Oil fell in early Asian trade on signs of more easing of supply disruptions in the Middle East.
Crude oil is testing its 200-day moving average after a corrective low, with price action now at a key inflection point between support stabilization or deeper downside.
Big oil tankers are commanding $280,000 a day to head into the Persian Gulf to pick up cargoes, danger notwithstanding.
Oil prices drop as tanker traffic through the Strait of Hormuz picks up amid U.S.-Iran negotiations, though mines remain in the central channel.
Oil surging to more than $120 a barrel last spring cut about three-tenths of a percentage point from U.S. economic output, but the blow was a small fraction of what would have taken place from a similar oil shock in the 1980s when the country was more reliant on imports, a new Dallas Fed study estimated.
The sanctions waiver could be a sign that talks between the U.S. and Iran are progressing well.
Oil prices rebounded on Tuesday after a sharp fall the previous session supported by tempered optimism over U.S.-Iran peace talks, while investors awaited clearer signs of progress in restoring crude flows through the Strait of Hormuz.
Oil futures rose on a likely technical recovery after solid losses overnight.