Oil Prices Whipsaw as US-Iran try to work out deal to end war

Watch on YouTube ↗  |  May 07, 2026 at 19:07  |  2:59  |  Bloomberg Markets
Speakers

Summary

Oil prices whipsaw as the US waits for Iran's response to reopen the Strait of Hormuz. Mike McGlone of Bloomberg Intelligence provides a bearish outlook on crude oil, corn, soybeans, and gold, expecting a sharp decline by year-end due to political incentives and weak demand.

  • Oil volatility continues amid US-Iran negotiations to end the war and reopen Hormuz.
  • McGlone sees WTI crude peaked near $120 and likely to fall to $50 by midterms.
  • Natural gas has already turned down year-over-year, similar to 2022 pattern.
  • Corn and soybeans are at resistance with hedge funds long, vulnerable to a drop.
  • Gold is a highly volatile speculative asset dependent on stock market direction.
  • McGlone warns of severe commodity deflation if the stock market declines.
Trade Ideas
Mike McGlone Senior Commodity Strategist, Bloomberg Intelligence 0:18
Crude peaked, likely to fall to $50.
Oil prices have likely peaked around $120 and will trend lower, driven by President Trump's political need to lower prices before midterms, supply and demand fundamentals in his favor, and the contango structure of futures contracts. December WTI crude at $75 is more likely to head toward $50.
WTI HIGH
Mike McGlone Senior Commodity Strategist, Bloomberg Intelligence 1:29
Corn and soybeans will fall with crude.
Corn and soybeans are at strong resistance levels (December corn around $5, soybeans around $12) with hedge funds holding long positions, but they are highly dependent on crude oil staying elevated. Since crude is likely to fall, corn and soybeans will auto-correlate downward, posing downside risk.
CORN SOYB MED
Mike McGlone Senior Commodity Strategist, Bloomberg Intelligence 2:31
Gold is bad, volatile, dependent on stocks.
Gold is a highly volatile speculative asset (180-day vol 2.3x S&P 500, highest since 2006) and is almost completely dependent on the stock market going higher. If the stock market drops, gold will see severe deflation. It is currently unattractive.
GLD MED
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This Bloomberg Markets video, published May 07, 2026, features Mike McGlone discussing WTI, CORN, SOYB, GLD. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Mike McGlone  · Tickers: WTI, CORN, SOYB, GLD