Deception in the Oil Market
Tensions between the US and Iran continue to escalate, with both countries accused of dishonesty by FGE NexantECA Chairman Emeritus Fereidun Fesharaki. Speaking on June 11th, 2026, he stated that oil prices are being driven by sentiment rather than physical movements.
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Can Oil Prices Break Free from Sentiment?
Fesharaki bluntly stated that both sides are lyingin the conflict, suggesting that neither the US nor Iran is being entirely truthful about their intentions or actions. As a result, the oil market is being manipulated by sentiment, rather than being driven by actual physical supply and demand.
The Chairman Emeritus explained that the current situation is creating uncertainty in the oil market, making it difficult to predict future price movements. He emphasized that the physical oil market is not as affected as the sentiment-driven market.
Despite the current uncertainty, Fesharaki believes that oil prices will eventually return to being driven by physical supply and demand. However, until the conflict between the US and Iran is resolved, the market is likely to remain volatile.
Frequently Asked Questions
The consequences of the ongoing conflict will likely be felt for some time, with oil prices remaining unpredictable. As the situation continues to unfold, it remains to be seen how the oil market will react.
What is driving oil prices currently? Oil prices are being driven by sentiment rather than physical supply and demand due to the conflict between the US and Iran. Is the physical oil market affected? The physical oil market is not as affected as the sentiment-driven market, according to Fesharaki. Will oil prices return to normal? Eventually, oil prices will return to being driven by physical supply and demand, but the timeline is uncertain.