Oil price down nearly 2% in early Asian trade

Oil prices fell nearly two percent in early Asian trade after strong gains in recent days, driven by the conflict in the Middle East.

West Texas Intermediate was down 1.98 percent at $79.44 per barrel, having soared 8.5 percent on Thursday to $81.01. Brent North Sea Crude, which rose 4.9 percent on Thursday, had not yet been traded.

“Further action to reduce pressure on oil is imminent, and the oil price seems to have pretty much stabilized,” US President Donald Trump said on Thursday.

On Tuesday, Trump ordered the US Development Finance Corporation to provide political risk insurance for all maritime trade through the Gulf.

He said the US Navy would, “if necessary,” begin escorting tankers through the Strait of Hormuz — a vital chokepoint for crude that Iran has effectively closed off — “as soon as possible.”

In stock markets on Thursday, a rebound petered out after Asian markets closed, with European exchanges shedding around 1.5 percent and Wall Street’s main indices also retreating.