West Texas Intermediate plunges 3% after Trump advises against attacking Iran
West Texas Intermediate crude futures fell 3% after former President Trump said the U.S. should not attack Iran in the near term. His remarks reduced geopolitical risk premiums and led analysts to revise down volatility expectations for oil markets.
1. WTI Oil Plummets 3% Following U.S. Stance on Iran
WTI futures declined by 3% on Monday after former President Trump’s remarks discouraged a near-term U.S. military action against Iran. The sell-off accelerated in early Asian trade, with trading volume rising by 18% compared to the 30-day average. Analysts at EnergyVue noted that the risk premium previously attached to Middle East conflict fears evaporated almost entirely, prompting a sharp revaluation in WTI contracts.
2. Inventory Data and Short-Term Outlook
The Energy Information Administration reported a 2.5 million-barrel build in U.S. crude oil stocks for the week ending Friday, reinforcing bearish sentiment. Domestic refinery utilization held steady at 87%, while total petroleum inventories reached their highest level in five weeks. Commodity strategists now project WTI to trade in a range driven by weekly inventory swings and seasonal demand patterns, forecasting limited upside until global crude demand indicators improve.