Trump's oil price influence: Market reacts to tariffs and tweets
Oil prices on the New York fuel exchange are falling after a series of increases. The rates are influenced by U.S. President Donald Trump's decisions. According to the investment bank Goldman Sachs, he favours West Texas Intermediate (WTI) crude oil at $40-50 per barrel.
Oil prices on the New York fuel exchange are declining after four days of increases. A barrel of West Texas Intermediate oil for June deliveries currently costs approximately €56.84, a decrease of 0.49 per cent. Meanwhile, Brent oil for July is priced at approximately €59.16 per barrel, a decrease of 0.54 per cent after a previous rise of nearly 10 per cent.
The White House considers these rates too high. Analysts at Goldman Sachs suggest that U.S. President Donald Trump prefers WTI oil prices at $40-50 per barrel.
Daan Struyven from the investment bank notes that the President of the United States frequently comments on matters related to oil and U.S. energy on social media, influencing the market.
Struyven highlights that Donald Trump consistently prioritised oil and U.S. energy dominance, as evidenced by nearly 900 related posts. This raises the question of how significantly such messaging influences raw material prices.
Pressure on Iran draws attention
Trump announced that the United States will exert maximum pressure on Tehran regarding oil exports, which could lead to a complete halt if an agreement on Iran's nuclear programme is not reached.
Warren Patterson from ING Groep NV assesses that U.S. sanctions and threats against Iran may support oil price increases. However, when U.S. tariffs quiet down, investors may focus on the supply of raw materials from OPEC+ countries and their plans to increase deliveries.
The WTI oil price, currently slightly over €56.84 per barrel, has fallen by about 12 per cent this year. According to economists, this is partly due to U.S. tariff policy and surprisingly early decisions by OPEC+ countries to plan an increase in production.
