Oil falls as Trump comments on Iran talks ease supply concerns
USO•Oil prices fell after President Donald Trump said the United States would not attack Iran before next month’s elections and described talks as productive. Brent fell 0.7% to $103.53 a barrel, while WTI fell 0.6% to $90.97.
1. Prices fall on talks
Brent crude futures fell 72 cents, or 0.7%, to $103.53 a barrel, and U.S. West Texas Intermediate crude futures fell 52 cents, or 0.6%, to $90.97 by 0220 GMT on Friday. Trump said Washington was having “productive discussions” with Iran and that no attack was planned before the November 3 midterm congressional elections.
2. Supply disruptions persist
Brent was set for a weekly gain after settling 4% higher on Thursday, while WTI was set for a slight weekly decline. Producers in the Gulf of Mexico had shut in about 1.3 million barrels per day, or 62.9% of current oil production, as Hurricane Isaias approached.
3. Sanctions and shipping risks
Iran’s Tasnim news agency reported that Foreign Minister Abbas Araqchi said Tehran was reviewing a U.S. response to a proposal to reopen the Strait of Hormuz within seven days. The U.S. imposed new sanctions on individuals, networks and 17 vessels for transporting Iranian crude, oil products and petrochemicals.
