Headline news is helping to push oil back down. Below is some of those headlines:
The US is seeking a “step-by-step” agreement with Iran, according to ILNA, citing Pakistani sources.
Washington’s efforts could provide a path toward negotiations with Tehran without abandoning military and economic pressure.
US President Trump says the United States is producing more “Exquisite and Elite Weapons” than at any time in its history.
Trump says US defense factories are operating around the clock, with new plants being built and Patriot, THAAD, Tomahawk and other missile systems being delivered to US forces.
Trump says oil is flowing through the Strait of Hormuz.
Trump says countries that have not supported the United States should reimburse it when the conflict is over.
Saudi Arabia is reportedly seeking to further increase oil supplies through the Strait of Hormuz, according to Bloomberg sources.
Trump says price increases across America were caused by Biden and the Biden administration, not by Trump.
Trump says prices are falling sharply, except temporarily for oil.
Trump says oil prices will “drop like a rock” once the military conflict with Iran ends, adding that he does not expect the conflict to last long.
The most market-sensitive headline is the report that Washington is seeking a step-by-step agreement with Iran. It is an early indication that a diplomatic channel may be developing, but it does not signal an immediate end to the conflict. The report specifically says the United States would continue applying military and economic pressure during the process.
For oil traders, the headlines pull in a more bearish direction. Trump says oil is moving through the Strait of Hormuz, Saudi Arabia is reportedly looking to boost shipments through the waterway, and the US president expects prices to fall sharply when the conflict ends. Nevertheless, the situation remains fluid. Until there is clearer evidence of sustained negotiations or a ceasefire, geopolitical risks surrounding Iran and the Strait of Hormuz are likely to keep volatility elevated.
The price of crude oil has come off on the headline news. The price moved to a new intraday low of $100.79. The high price reached early today extended up to $104.95. Getting below the $100 level and stay below that level would give sellers some hope. The rising 100 hour moving average is currently at $98.60. Falling below that moving average would also add to more selling confidence.
US stocks are also getting a boost.
Dow -27 pointsS&P -18.78 pointsNasdaq -54 points.
All are way off their lows.
Trader caution: When things start to look bad, you can expect Trump and Co. to counter with loads of headlines. Whether they lead to positive conclusions is questionable.
This article was written by Greg Michalowski at investinglive.com.