Oil's peace trade risks a rude awakening
USO•Brent crude has fallen more than a fifth to about $90 a barrel since late October as hopes for a post-election Iran deal grow. Shipping remains costly, fuel markets are strained and diplomatic deadlock could still lead to renewed escalation.
1. Oil prices retreat
Brent prices have fallen more than a fifth to $90 a barrel since late October as hopes for a post-election Iran deal grow. Softer physical markets partly justify the decline, but shipping remains costly and fuel markets are strained.
2. Risks remain
Diplomatic deadlock may yet lead to a fresh escalation. On November 10, Brent futures were down $2.39, or 2.58%, at $90.18 a barrel, while U.S. West Texas Intermediate futures fell $2.11, or 2.43%, to $84.74. Prices extended losses after Donald Trump played down the need for additional military action against Iran; prospects of oversupply were also in focus.
