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 1.3% to $102.91 a barrel, while WTI declined 1.2% to $90.40.
1. Prices retreat
Brent crude futures fell $1.37, or 1.3%, to $102.91 a barrel by 0450 GMT on Friday, while U.S. West Texas Intermediate crude futures dropped $1.09, or 1.2%, to $90.40. Brent was set for a weekly gain after settling 4% higher Thursday; WTI was set for a slight weekly decline.
2. Iran talks and sanctions
Trump said Washington was having “productive discussions” with Iran and that no attack was planned before the November 3 midterm congressional elections. Iran’s Tasnim news agency reported that Foreign Minister Abbas Araqchi said Tehran was reviewing the U.S. response to a proposal to reopen the Strait of Hormuz within seven days. The United States imposed sanctions on individuals, networks and 17 vessels on Thursday for transporting Iranian crude, oil products and petrochemicals.
3. Other supply factors
XS.com analyst Linh Tran said easing tensions would need concrete progress in negotiations and improvements in shipping safety through the Strait of Hormuz. China is set to resume refined fuel exports after a brief pause during its Golden Week holiday, while the International Energy Agency agreed this week to accelerate oil-stock releases and prioritize diesel supplies. Hurricane Isaias has shut in about 1.3 million barrels per day, or 62.9%, of current Gulf of Mexico oil production as of Thursday.
