Oil futures are down bigly this morning followingcomments from President Trump that the war in Iran would be ended "very quickly," but investors remained uncertain about the potential for de-escalation.
"We're going to end that war very quickly. They want to make a deal so badly, they're tired of - this should have happened for 47 years," Trump told a group of Congress members at the White House's annual congressional picnic on Tuesday.
"Somebody should have done something about it. And it's going to happen, and it's going to happen fast. And you're going to see oil prices plummet," the president added.
Oil's declines were also reportedly driven by this optimism about a final deal draft peace agreement:
On Tuesday, two Chinese tankers carrying crude oil traversed the Strait of Hormuz.
Another, a South Korean vessel, was passing through it, according to a Reuters report. Jim Reid, of Deutsche Bank, noted that this marks"one of the busiest days since the closure."
However,Iran's Revolutionary Guards also warned on Wednesday that any renewed strikes on Iran could expand the war beyond the region.
The IRGC also said it had not used all its capacities against the U.S. and Israel, while warning that their "devastating blows will crush" the adversaries, the IRGC said in a statement on its Sepah News website.
For now, all eyes are on the official inventory and supply data (and SPR) afteryuuuge drawsreported by API overnight...
Crude stocks tumbled last week (biggest draw since Feb 13th) for the fourth week in a row. Gsoline inventories saw their 14th weekly drawdown in a row whil distillates saw another small build...
Source: ZeroHedge News
