Energy investors are well aware of factors which make an impact on crude oil prices. Apart from fundamentals, sentiment of oil traders is sensitive even to verbal interventions of policymakers who are not directly involved in the crude market. For instance, France’s president made a few statements during his visit to the White House that triggered an immediate rally in the oil market. Interestingly, Russia is of little importance to the market despite being the top global oil exporter which produces more crude than the whole OPEC.
Emmanuel Macron was able to convince Donald Trump to practice flexibility over Iran and the new deal regulating Iran’s nuclear program. The news came as a big surprise to the global oil market. No one dared to assume that Macron would find forceful arguments for the US president. However, the rhetoric of the White House has softened notably. "Nobody knows what I'm going to do on the 12th, though Mr. President, you have a pretty good idea. But we'll see, but we'll also see if I do what some people expect, if it's possible to make a new solid foundation contract,” Trump made a comment on proposals of his French counterpart.
Nevertheless, oil traders do not have to be laid-back. Even in case the oil market can keep momentum, oil prices are set for a downward correction amid massive speculative deals in the futures market. So, experts do not rule out that the bullish sentiment of energy investors could change abruptly. Apparently, Trump’s remark could have been a matter of courtesy. When Iran warned that it could resume its nuclear activities if the US leaves the international deal, Trump threatened severe sanctions. "If they restart their nuclear program, they will have bigger problems than ever before."
