Perspective on Crude Oil by Ashish Rajodiya, Head - Commodities, PL Capital
Below the Perspective on Crude Oil by Ashish Rajodiya, Head - Commodities, PL Capital
"Oil is extending its slide, with Brent down about 3.2% to near $100.55 a barrel, WTI off roughly 3%, and MCX crude falling about 4% — unwinding a chunk of the war-risk premium built up since the Iran standoff began. The move follows President Trump telling Fox News he'd be "probably... open" to meeting Iranian President Masoud Pezeshkian, who is in New York for the UN General Assembly this week, alongside continuing Qatari efforts to mediate a de-escalation between Washington and Tehran. Adding to the relief, CENTCOM commander Admiral Brad Cooper said oil, cargo and LNG volumes moving through the Strait of Hormuz over the past two weeks were higher than at any point in the past six months, with Gulf allies having shipped more than a billion barrels through the strait in the last couple of months — progress he credited to US naval escorts and mine-clearance operations finally "paying off." With much of the recent rally built on fear of a full shipping shutdown rather than an actual supply loss, prices are giving back ground quickly now that flows are proving resilient; the next swing likely hinges on whether a Trump-Pezeshkian meeting actually materializes at the UN this week — a real sit-down would extend today's slide, while any breakdown in that diplomacy or a fresh incident in the Strait would send the premium right back into the price."
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