New Delhi, May 20 (IANS): Global crude oil prices fell nearly 1 per cent for a second consecutive session on Wednesday after US President Donald Trump reiterated that the conflict with Iran could end “very quickly,” raising hopes of a possible diplomatic breakthrough. International benchmark Brent crude futures slipped 0.9 per cent or nearly $1 to $110.28 per barrel, while US West Texas Intermediate crude futures declined about 1 per cent or $1.03 to $103.12 per barrel, following a similar decline in the previous session amid signs of progress in talks between Washington and Tehran. Speaking at the annual Congressional Picnic, Trump said Iran wanted “to make a deal so badly” and predicted a sharp decline in global crude oil prices, citing abundant supply in the market and stating that “there’s so much oil out there, prices are going to fall sharply.” Investors are closely monitoring whether the US and Iran can reach common ground and secure a lasting peace deal, particularly as Washington’s stance has appeared inconsistent in recent days.
Despite the two-session decline, markets remained cautious due to uncertainty surrounding peace negotiations and continuing disruptions to oil supplies from the region, with experts noting that the near-term bias in oil prices remains cautiously bullish. Global brokerage Citigroup expects Brent crude prices to climb to $120 per barrel in the near term, while Morgan Stanley described the oil market as being in “a race against time,” warning that factors currently limiting price gains could weaken if the Strait of Hormuz remains shut into June. The brokerage noted that higher US crude exports and softer Chinese imports have helped cushion the market from a deeper supply shock so far, but cautioned that this buffer may not hold if the diplomatic impasse between Washington and Tehran persists beyond the coming weeks.