WTI Dips Nearly 5% as Trump Cancels Strikes on Iran


   
   HOUSTON, TX (DTN) --Oil futures prices retreated on Thursday (6/11), 
dropping by nearly 5% after U.S. President Donald Trump canceled scheduled 
strikes on Iran and suggested that a deal is close.

   The NYMEX WTI crude futures contract for July delivery fell $4.03 to $86.00 
bbl, after a session high at $93.64.  ICE Brent for August shipments dropped 
$4.39 to $88.71 bbl after peaking at $ 95.50.

   July NYMEX ULSD slipped by $0.1511 to $3.4615 gallon, while the front-month 
RBOB futures contract retreated by $0.0521 to $3.0578 gallon.

   The U.S. dollar index dropped/rose by 0.319 point to 99.615 against a basket 
of foreign currencies.

   In a post on Truth Social, Trump said talks with Iran "have been brought to 
the highest level of Iranian level and approved."

   Following Trump's statement, a bearish sentiment dominated the oil futures 
market, erasing part of Wednesday's gains. Crude oil benchmarks rallied on 
Wednesday after the U.S. Energy Information Administration reported a seventh 
consecutive weekly draw in domestic crude inventories.

   U.S. commercial crude oil inventories fell by 7.2 million bbl to 426.5 
million bbl during the week ended June 5, the lowest commercial crude oil 
inventory level since the week ended February 13, 2026, when stocks stood at 
419.8 million bbl.

   Distillate fuel inventories declined by 200,000 bbl to 102.1 million bbl 
during the reference week after rebounding the prior week. In contrast, total 
motor gasoline stocks increased by 200,000 bbl to 215.1 million bbl during the 
reference week.

   Separately, the World Bank said in its latest Global Economic Prospects 
report that the conflict in the Middle East is expected to slow global economic 
growth to its weakest pace since the COVID-19 pandemic, as higher energy costs 
fuel inflation and keep borrowing costs elevated.

   The World Bank lowered its forecast for global growth to 2.5% in 2026 from 
2.9% in 2025, citing weaker outlooks across roughly two-thirds of economies. 
The report assumes disruptions tied to the closure of the Strait of Hormuz 
begin easing later this year but warns energy markets remain vulnerable.

   Brent crude oil is projected to average $94 bbl in 2026, up 36% from 2025 
under the report's baseline scenario.




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