NEW YORK: Oil prices rose more than 1% on Wednesday after US President Donald Trump stated that the new ceasefire agreement with Iran is not final and that the Iran war could resume if he is unsatisfied. However, concerns over excess supply next year limited the gains.
Price Movements
Brent crude futures were up 89 cents, or around 1.1%, at $79.85 a barrel at 1534 GMT. US West Texas Intermediate (WTI) gained 91 cents, or 1.2%, to $76.96. Both contracts hit their lowest since early March earlier in the session.
Trump's Statement
Trump said on Wednesday that a memorandum of understanding with Iran was not final, and that he could resume a bombing campaign if he did not like it or if Iran did not "behave."
Market Analyst's View
"(There's) still a bit of uncertainty in terms of the US situation ... (it) makes sense for oil to bounce back from these levels after staging what has been quite a sharp decline in the last few days," said Fawad Razaqzada, market analyst.
