Oil Prices Fall as US President Plays Down Prospect of Escalation with Iran

PUKMEDIA

Oil field.

Oil prices declined on Tuesday, extending losses from the previous session after US President Donald Trump played down the prospect of further military action against Iran for the time being, easing concerns over prolonged supply disruptions in the Middle East.

According to Reuters, Brent crude futures fell by 70 cents, or %0.75, to $91.88 a barrel by 0246 GMT, while US West Texas Intermediate (WTI) crude dropped 78 cents, or %0.90, to $86.07. Both benchmarks had declined by around 1 per cent earlier in the session.

Brent settled %5.85 lower in the previous session after falling to its lowest level since 31 August.

Trump said on Monday he would postpone further military strikes against Iran for the time being, following appeals from regional countries, including Qatar, whose prime minister raised the issue during talks at the White House.

In an interview with Reuters and a subsequent appearance in the White House briefing room, Trump said the US would maintain its naval blockade of the Strait of Hormuz for now.

On the supply side, OPEC oil production increased in October, according to a Reuters survey, driven by higher output in Saudi Arabia, Kuwait and Iraq despite continued export restrictions.

Brent has fallen approximately %22 from its six-month peak of $118 a barrel, reached on 30 October, as concerns over a possible escalation of US attacks on Iran following the midterm elections have eased. However, fears of disruptions to maritime shipping remain.

Meanwhile, all three major Wall Street indices surged by more than %2 on Monday.

Elsewhere, Russian and Ukrainian officials were scheduled to begin two days of US-mediated talks on Tuesday, their first meeting since February. The discussions follow Trump's suggestion last week that a broader peace agreement could be possible in their four-and-a-half-year conflict, potentially incorporating European security arrangements.



PUKMEDIA