%Oil prices fell 6% on June 24 as a ceasefire between Israel and Iran appears to be holding, and after U.S. President Donald Trump said China can continue buying oil from Iran.
Brent crude oil, the international standard, fell 6.31% to trade at $66.98 U.S. per barrel, while West Texas Intermediate (WTI) crude oil, the American benchmark, dropped 6.36% to $64.16 U.S. a barrel.
Energy analysts say prices are falling as traders bet that the conflict in the Middle East is winding down and that crude will continue to flow as usual in the region.
The decline in crude prices has leading oil stocks such as %Chevron (NYSE: $CVX), %ExxonMobil (NYSE: $XOM), and %OccidentalPetroleum (NYSE: $OXY) declining as well.
At the same time, Trump said in a post on social media: “China can now continue to purchase Oil from Iran. Hopefully, they will be purchasing plenty from the U.S., also. It was my Great Honor to make this happen!”
In May, Trump had threatened to ban any country buying Iranian oil from doing business with the U.S.
China purchases the majority of the 1.7 million barrels per day that Iran exports, according to market data. Oil prices are now at their lowest level since before Israel targeted Iran on June 13.
President Trump’s decision to join Israel’s campaign and bomb three nuclear sites in Iran triggered fears that Tehran might cutoff oil exports from the Persian Gulf in retaliation.
Those fears have now subsided, say analysts, sending crude oil prices sharply lower.
The stock of Chevron, one of the largest U.S. oil producers, is down 2% this year and trading at $143.55 U.S. a share.
