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.