Oil falls as Trump downplays prospect of escalation with Iran
USO•Brent fell 24 cents, or 0.23%, to $92.33 a barrel, while U.S. West Texas Intermediate dropped 35 cents, or 0.40%, to $86.50, after Trump said U.S. military action against Iran was not necessary “at this point.”
1. Oil prices edge lower
Oil prices extended losses after Trump said he would hold off on new military strikes against Iran for now, easing concerns about prolonged disruptions to Middle East supply. Brent settled down 5.85% in the previous session after reaching its lowest level since August 31.
2. Iran tensions remain
Trump said he plans to maintain a naval blockade in the Strait of Hormuz. Attacks on shipping there are continuing, but have not escalated in a way that has forced a fresh risk premium into the market, KCM Trade chief market analyst Tim Waterer said. Senior U.S. and Gulf officials have questioned the chances of an imminent peace deal, while Iranian security council chief Mohsen Rezaei rejected claims of talks.
3. Output and other talks
OPEC oil output rose in October, led by gains in Saudi Arabia, Kuwait and Iraq despite continued export constraints, a survey found. Russian and Ukrainian officials planned to meet for two days of U.S.-brokered talks, their first since February.
