Trump Meeting with Kim Jong-un Pushes Oil Prices Higher
Following announcement of U.S. President Donald Trump agreeing to meet with Kim Jong-un, the president of North Korea, crude oil prices rallied as the market sentiment slightly improved. Crude oil prices have been pressured over the past couple of months. One reasons of which includes the tension between the two countries.
According to Chung, the North Korean leader have expressed his eagerness in meeting the American president in a short period of time. Aside from the agreement to a meeting, Kim Jong-un have also stated that he will stop running nuclear and missile tests while the talks are being held.
The news surprised the markets due to the recent threats of North Korea against the United States in response to Trump’s speech to the US General Assembly where he stated to destroy North Korea completely.
The meeting has sparked hopes of a possible resolution and a breakthrough in the relationship between the two countries as well as prevent North Korea’s intentions to push through with nuclear-missile tests which may possibly hit other countries including the United States.
However, Trump has warned that sanctions may still remain despite the planned meeting. A representative from Trump’s administration have stated that the meetings are still at a negotiation state.
May Meeting
Trump’s agreement to the meeting was from an invitation that came from Chung Eui-yong, a South Korean national security director along with the rogue country. Trump along with other officials from the U.S. was briefed by Chung regarding the rare meeting between officials from South korea along with Kim Jong-un held in Pyongyang last Monday.According to Chung, the North Korean leader have expressed his eagerness in meeting the American president in a short period of time. Aside from the agreement to a meeting, Kim Jong-un have also stated that he will stop running nuclear and missile tests while the talks are being held.
The news surprised the markets due to the recent threats of North Korea against the United States in response to Trump’s speech to the US General Assembly where he stated to destroy North Korea completely.
The meeting has sparked hopes of a possible resolution and a breakthrough in the relationship between the two countries as well as prevent North Korea’s intentions to push through with nuclear-missile tests which may possibly hit other countries including the United States.
However, Trump has warned that sanctions may still remain despite the planned meeting. A representative from Trump’s administration have stated that the meetings are still at a negotiation state.
Oil Price Movement
Oil prices which were down last week due to a rise in U.S. crude supplies have slightly recovered before the end of the week. Oil prices were also higher during the trading session on Tuesday prior to the release of the inventory report in the U.s. as well as the the decline in the U.S. dollar.
The U.S. West Texas Intermediate was trading by around $62.60 per barrel earlier during the week while Brent crude futures were up by as much as 25 cents to trade at $65.79 per barrel.
Oil prices then were mostly steady by Friday with Brent crude futures trading at $63.79 per barrel which is 0.3% higher from the previous trading session. The West Texas Intermediate crude futures also was up by 0.23% from the last trading session to settle at $60.25 per barrel.
However, both benchmarks have recorded a decline of around 1% to 1.7% during the week. Prices of crude oil are expected to decline should the U.S. crude output continue with its weekly rally. The growing supply has concerned the markets for the past weeks and have pushed prices of oil down.
The U.S. West Texas Intermediate was trading by around $62.60 per barrel earlier during the week while Brent crude futures were up by as much as 25 cents to trade at $65.79 per barrel.
Oil prices then were mostly steady by Friday with Brent crude futures trading at $63.79 per barrel which is 0.3% higher from the previous trading session. The West Texas Intermediate crude futures also was up by 0.23% from the last trading session to settle at $60.25 per barrel.
However, both benchmarks have recorded a decline of around 1% to 1.7% during the week. Prices of crude oil are expected to decline should the U.S. crude output continue with its weekly rally. The growing supply has concerned the markets for the past weeks and have pushed prices of oil down.
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Trump Meeting with Kim Jong-un Pushes Oil Prices Higher
Reviewed by fsmsmart
on
March 09, 2018
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Reviewed by fsmsmart
on
March 09, 2018
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