Crude prices fell Monday after a tweet by U.S. President Donald Trump warning prices were getting too high but the decline may have been overdone, an analyst said. Photo by Brian Kersey/UPI | License Photo
Feb. 26 (UPI) -- Crude oil prices were slightly higher early Tuesday as they appeared to bounce after Monday's decline, analysts said.
As of 9:10 a.m. EST West Texas Intermediate futures prices rose 0.1 percent to $55.56 per barrel while Brent crude oil futures rose 0.5 percent to $65.25 per barrel at the same time.
Brent prices fell on Monday 3.5 percent from $67.25 per barrel to $64.91, with WTI also seeing declines.
This was largely attributed to U.S. President Donald Trump's Monday morning tweet warning OPEC that current prices were getting too high. He said this in the context of OPEC cutting production on purpose by 800,000 barrels per day since Jan. 1 to support higher price levels.
The early Tuesday "price action suggests that Monday's break may have been too much, too fast, given the current fundamentals," James Hyerczyk, senior analyst at FXEmpire.com, wrote in a report.
"Traders are saying that Trump's comments carry more weight at this time because U.S. legislators are resurrecting a bill that would make OPEC subject to U.S. antitrust laws," Hyerzczyk added.
In addition, optimism about possible advances in trade talks between the United States and China failed to find ground for justification Monday. Traders are growing uncomfortable with the lack of details on talks, he added.
The possibility that the United States may not renew waivers so that nations can continue buying Iranian crude oil, and the chance of a deepening political crisis in Venezuela, have supported price levels after a rally last week, traders have said.
Sukrit Vijayakar, an analyst at Trifecta Consultants, told UPI that, with Trump concerned about economic growth and his re-election chances, he "appears to be willing to take any step he believes is likely to be necessary for capping the rise in oil prices."
"This should lead to circumspection in the market," Vijayakar said.
As for supplies, "there appears to be no shortage of oil for now," he added. "The impact of refineries returning from turn around (on the crude and product stocks) remains to be seen."