Oil: Brent falls to $91.88 a barrel as Trump downplays Iran escalation
By the AFREEQUE newsroom, based on MyJoyOnline
Brent crude fell 70 cents to $91.88 a barrel after Donald Trump downplayed the need for military action against Iran "for now". He plans to maintain the naval blockade of the Strait of Hormuz, and OPEC raised its output in October, according to Reuters.
Oil prices fell on Tuesday, extending the previous day’s losses. Brent crude, the European benchmark, lost 70 cents, or 0.75%, to $91.88 at 02:46 GMT, according to Reuters. US West Texas Intermediate fell 78 cents, to $86.07. The previous day, Brent had dropped 5.85%, to its lowest level since 31 August.
The move follows the decision by Donald Trump to delay new military strikes against Iran, after appeals from countries in the region, including Qatar. The US president did, however, indicate that he would maintain the naval blockade of the Strait of Hormuz. According to Tim Waterer, chief market analyst at KCM Trade, attacks on ships in the strait have not yet led to a new risk premium in the market.
Brent has lost about 22% since its six-month peak of $118 on 30 October. According to Gregory Brew, senior analyst at Eurasia Group, Brent is unlikely to fall below $90 without lasting signs of de-escalation and without an agreement between the United States and Iran. Meanwhile, OPEC output rose in October, driven by Saudi Arabia, Kuwait and Iraq, according to a Reuters survey.
Russian and Ukrainian officials are also due to meet on Tuesday for two days of talks organised by the United States, the first since February.
