Oil in Global Economy Series: Oil price moves higher as Macron expects Trump to decide against JCPOA

Oil price moved higher after it bottomed around $73 per barrel area (Brent) earlier this week over French President Emmanuel Macron’s state visit to the United States as it was speculated that President Macron would succeed in convincing President Trump to sign the Iran sanctions waiver and make the United States stay part of the Joint ComprehensivePlann of Action (JCPoA), better known as Iran Nuclear Agreement.

However, as Macron indicated in a statement on Wednesday that it is likely that president Trump would act against staying part of the nuclear agreement, oil price rose as reposing the Iran sanction is very likely to create a supply crunch in the market unless other players step in. Speaking at a news conference, president Macron said, “I don’t know what the American decision will be but the rational analysis of all President Trump’s statements does not lead me to believe that he will do everything to stay in the JCPOA”.

Though he hinted at the possibility of a new deal, speculators pushed oil price higher. Brent is currently trading at $74.9 per barrel and WTI at $6.2 per barrel discount.