Oil prices fell on Tuesday, extending losses from the previous session, after US President Donald Trump said military action against Iran was not necessary “at this stage,” easing concerns about prolonged disruptions to Middle Eastern oil supplies.
Brent crude futures fell 24 cents, or 0.23%, to $92.33 a barrel by 01:02 GMT, while US West Texas Intermediate (WTI) crude futures dropped 35 cents, or 0.40%, to $86.50 a barrel.
Later in the session, Brent futures fell by a further dollar to $91.56 a barrel, while US crude futures also declined by a dollar to $85.79 a barrel.
Brent crude had settled 5.85% lower in the previous session after falling to its lowest level since August 31.
On Monday, Trump said he intended to exercise restraint and refrain from launching further military strikes against Iran for the time being, following appeals from regional countries, including a request from Qatar’s prime minister during talks at the White House.
In an interview with Reuters and a subsequent appearance in the White House briefing room, Trump said he intended to maintain the naval blockade in the Strait of Hormuz for the time being.
Tim Waterer, an analyst at KCM Trade, said: “The market continues to prioritize President Trump’s more conciliatory tone toward Iran since the midterm elections.”
He added: “Although attacks on ships in the Strait of Hormuz are continuing, they have not escalated to a level that would impose a new risk premium on the market.”
Senior officials in the United States and Gulf countries have expressed doubts about the prospects of reaching an imminent peace agreement between Washington and Tehran.
Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, said the United States must “stop making up fake news about imaginary negotiations,” adding that “the time has come to comply with the seven conditions Iran has repeatedly presented.”
On the supply side, a Reuters survey showed that oil production among members of the Organization of the Petroleum Exporting Countries (OPEC) increased in October, driven by higher output in Saudi Arabia, Kuwait and Iraq, despite continued export restrictions.
Separately, Russian and Ukrainian officials are scheduled to meet on Tuesday for two days of US-mediated talks, the first such meeting since February. The development comes after Trump said last week that a comprehensive peace agreement could be possible in their four-and-a-half-year war.
Source: Reuters
