Oil falls as Trump comments on Iran talks ease supply concerns
- Brent crude futures dropped $1.10, or 1.1%, to $103.18 a barrel
Oil prices dropped as Middle East supply concerns eased after Trump's Iran statement and China's plans to resume refined fuel exports, despite ongoing regional tensions and other market disruptions.
- Trump's statement on US not attacking Iran
- China's plans to resume refined fuel exports
- Ongoing Middle East shipping threats and regional tensions
Oil fell on Friday as Middle East supply concerns eased after President Donald Trump said the US would not attack Iran before midterm elections next month and talked of “productive” talks to end their war that has disrupted global energy markets.
Plans by China, the world’s top oil importer, to resume refined fuel exports after a brief halt during its Golden Week holiday, also weighed on the market. Reuters reported the development on Friday, citing sources.
Brent crude futures dropped $1.10, or 1.1%, to $103.18 a barrel by 1328 GMT. US West Texas Intermediate (WTI) crude futures fell 49 cents or 0.5% to $91.00.
On a weekly basis, Brent prices are set to rise after settling 4% higher on Thursday, while WTI is set for a slight decline.
Trump’s Iran pledge along with China’s resumption of product exports were moving prices lower, said PVM Oil Associates analyst Tamas Varga.
Prices have been volatile this week as threats to shipping in the Gulf and the Strait of Hormuz, which carried shipments equal to about 20% of global oil and fuel before the war, have increased in October.
On Thursday, Trump said Washington was having “productive discussions” with Iran and said no attack was planned before the November 3 midterm congressional elections after media reports that he was considering an attack before then.
Iran Guards say seized US underwater drone in Hormuz
Iran’s Tasnim news agency reported the same day that Foreign Minister Abbas Araqchi said Tehran is reviewing the US response to its proposal that would reopen the Strait of Hormuz within seven days.
The US is still pressuring Iran economically to try to end the war, now in its eighth month, imposing sanctions targeting individuals, networks and 17 vessels for transporting Iranian crude, oil products and petrochemicals.
The Iran war and the conflict between Russia and Ukraine have disrupted supplies of refined fuels such as gasoline, jet fuel and especially diesel fuel.
The oil market is also contending with Hurricane Isaias in the Gulf of Mexico where producers have shut in about 1.3 million barrels per day, or 62.9%, of current oil production as of Thursday, according to the US Marine Minerals Administration.
Comments