September 10, 2019

Crude moves lower as Bolton firing opens slim possibility of sanctions relief

Featuring Elizabeth Rosenberg

Source: S&P Global

Journalists Brian Scheid, Jeff Mower

Crude futures settled lower Tuesday after US President Donald Trump said he fired National Security Advisor John Bolton, opening the possibility that sanctions on Iran might be eased.

NYMEX front-month crude settled 45 cents lower at $57.40/b, while ICE front-month Brent settled 21 cents lower at $62.38/b.

Also bearish for crude was news that the US Energy Information Administration cut its outlook for 2019 global oil demand growth by 100,000 b/d to 890,000 b/d, putting it below 1 million b/d for the first time since 2011. The EIA release coincided with Trump's announcement.

However, the fall in crude was short-lived, as prices climbed after the settle when the American Petroleum Institute reported a larger-than-expected 7.3 million barrel draw in US crude inventories. The market will likely look for confirmation in the EIA's weekly data due out Wednesday.

Read the full story and more in S&P Global.

Authors

  • Elizabeth Rosenberg

    Senior Fellow and Director, Energy, Economics and Security Program

    Elizabeth Rosenberg is a Senior Fellow and Director of the Energy, Economics, and Security Program at the Center for a New American Security. In this capacity, she publishes a...