Oil falls below $90 as Trump downplays prospect of escalation with Iran
USO•Brent fell below $90 a barrel for the first time since August 31, while Brent and U.S. crude futures extended losses after President Donald Trump said he would hold off on new strikes against Iran. Brent has dropped about 23% from its six-month peak of $118 on October 30.
1. Oil prices extend losses
Brent crude futures fell $2.39, or 2.58%, to $90.18 a barrel by 0930 GMT, while U.S. West Texas Intermediate futures dropped $2.11, or 2.43%, to $84.74. Brent briefly fell below $90 on Tuesday for the first time since August 31, after settling down 5.85% in the previous session.
2. Supply concerns weigh
Trump said on Monday he planned to hold off on new military strikes against Iran after appeals from countries in the region, including Qatar’s prime minister. A JPMorgan report estimated the global oil surplus at around 1.4 million barrels per day in October, while a survey found OPEC output rose that month, led by gains in Saudi Arabia, Kuwait and Iraq.
3. Brent retreats from peak
Brent has fallen about 23% from the six-month high of $118 reached on October 30, as fears of expanded U.S. attacks on Iran have eased. Concerns remain over potential shipping disruptions around the Strait of Hormuz.
