Oil falls as Trump says new Iran attacks are 'unlikely'
USO•Oil prices fell at Monday’s open after President Donald Trump said new attacks on Iran were highly unlikely as talks progress. Brent fell 0.85% to $97.48 a barrel and WTI declined 0.35% to $90.51.
1. Prices decline
Brent crude fell 84 cents to $97.48 a barrel by 0138 GMT, while U.S. West Texas Intermediate lost 32 cents to $90.51. The declines reversed small gains from Friday’s settlement; Brent had dropped 17% last week, its steepest weekly fall since the start of the COVID pandemic.
2. Trump comments on attacks
Trump told CNN he was “highly unlikely” to order new attacks on Iran if talks produced a strong agreement. Analyst Tim Waterer said markets were waiting to see whether the midterm elections had produced a lasting shift in Trump’s approach or only a temporary change in tone.
3. Supply outlook
JPMorgan estimated that global oil supply exceeded consumption by 1.1 million barrels per day in September and forecast a surplus of 1.4 million bpd in October. Iraq said it had reached an understanding with the United States to allow oil exports through the Strait of Hormuz via a shipping lane near Oman; Iraq’s foreign minister put the country’s losses from the war and export disruptions at $60 billion.
