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Oil Fell on Trump’s Tweet this Morning

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Oil fell on Trump’s tweet

This morning at around 9:12 AM ET, US crude oil futures were down almost $1.20 from last week’s closing level. Initially, oil prices traded higher, but the fall came after President Donald Trump’s tweet about the recent rise in oil prices. Trump said oil is getting expensive and OPEC should limit oil’s rise. Moreover, he thinks the rise could be tenuous.

However, US sanctions on Iran and Venezuela are also responsible for the rise in oil prices alongside OPEC’s production cut deal this year. Last year, Trump’s tweets were in favor of lower oil prices. But Goldman Sachs (GS), in its near-term outlook, is moderately bullish on oil prices. It expects that until first-half of 2019, oil prices might trend higher.

Upstream stocks and the broader market

The fall in oil prices could weigh on upstream stocks today—like ConocoPhillips (COP) and Chesapeake Energy Corporation (CHK), which might trend lower. And lower oil prices could drag down the S&P 500 Index (SPY) because of its exposure to energy stocks.

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