Oil prices down 4% as Trump hesitates on Iran strikes. Why Scotia says it will get worse
investingLive • • business
Key Points:
- Oil traders are uncertain whether US President Trump will initiate military action against Iran, with recent tensions causing a brief spike in oil prices before easing as Trump appeared to de-escalate the situation.
- Despite Trump's earlier encouragement of Iranian protesters, the oil market is now less convinced that military intervention is imminent, as evidenced by a nearly $3 drop in WTI crude prices.
- The broader oil market faces a significant oversupply issue, highlighted by large gasoline inventory builds in the US and forecasts from Scotiabank predicting a global supply surplus exceeding 2 million barrels per day in 2026.
- Scotiabank anticipates that oil prices will remain depressed until Saudi Arabia changes its market share strategy and OPEC+ implements new production cuts,
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