Oil prices reached their verdict on US President Trump’s decision - ANZ

Analysts at ANZ explained that after gyrating on rumours and headlines yesterday, oil prices reached their verdict on US President Trump’s decision to pull out of the Iran agreement, helped along by lower-than-expected US inventories. 

Key Quotes:

"Both WTI crude and Brent for near-term delivery soared about 3% (+USD2/bbl). Perhaps more importantly, Brent crude oil futures for the next four years are all through USD60/bbl for the first time since late 2015."

"This may reflect rising concerns about a possible confrontation in the Middle East."

"Whatever the cause, it sends a signal to invest in future supply."