Oil prices experienced further declines after a tweet about China’s ability to purchase oil from Iran. Prior to the comment, WTI crude oil prices had already decreased by $2.38, settling at $66.17.

The tweet expressed hope that China would also buy a substantial amount of oil from the United States. This statement added to the pressures already facing oil markets during the week.

The Impact Of The Tweet On Oil Prices

We’ve just seen oil prices take another hit, with West Texas Intermediate slipping over $2, falling to $66.17, after already encountering downward momentum. A tweet sparked it — not an uncommon trigger in this market — floating the idea that China might be sourcing crude from Iran. That suggestion hit a nerve. It deepened the price drop that had already been forming through broader sentiment and ongoing supply worries.

Reading into it, the tweet also threw in a line hoping China would increase its purchases from the US. That part was probably meant to inspire confidence, although it ended up only highlighting how unstable current trade dynamics are. Derivative traders need to stare that square in the face — it’s one thing for fundamentals to move prices slowly, it’s another entirely when tweets and comments carry this much weight.

Market participants — ourselves included — should view this as a useful, if slightly uncomfortable reminder: headlines matter just as much as inventories, production numbers, or shipping logs. When these kinds of statements are made, even informally, they can colour sentiment instantly.

Market Implications And Strategic Responses

From a pricing perspective, the sharp drop suggests positioning had leaned bullish, and was caught off guard. Perhaps some were expecting tighter supply discipline out of OPEC+ or a slower return of sanctioned oil. Instead, if buyers find other channels — and if those channels are perceived to be cheaper or politically favourable — it upends the balance of expected demand flows.

We should recheck our hedges and exposures, particularly in near-term contracts. Given how jumpy the market has reacted, pricing options for downside protection may still be reasonably valued relative to the scale of recent moves. Volumes were high during the decline, which means selling wasn’t confined to small traders — this had broader conviction aligned behind it.

Pay attention to spreads as well. The prompt month contracts weakened more than back months, a classic sign that traders are reassessing near-term physical demand and delivery constraints.

Behaviour in these circumstances matters. Extend position review windows — don’t let assumptions carry over unchecked. Sentiment won’t stabilise instantly. The timing and tone of policy chatter should remain firmly on the watchlist, particularly as it filters into supply expectations.

Short-term volatility should be expected to linger. We react, as much as we position. Feelings about the news will keep moving the needle. Best stay nimble.

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