Oil prices fell on Friday after US President Donald Trump said Washington would not attack Iran before next month’s midterm elections, easing some concerns over supply disruptions as the two countries pursue talks to end their conflict.
Brent crude futures for December delivery fell 72 cents, or 0.7%, to US$103.53 a barrel by 2.20am GMT, while US West Texas Intermediate (WTI) crude declined 52 cents, or 0.6%, to US$90.97.
Despite the pullback, Brent remained on track for a weekly gain after settling 4% higher on Thursday amid increased attacks on shipping carrying crude out of the Middle East. WTI was set for a slight weekly decline.
Trump said on Thursday that Washington was having “productive discussions” with Tehran and that no attack was planned before the Nov 3 midterm congressional elections.
Iran’s Tasnim news agency reported that Foreign Minister Abbas Araqchi was reviewing Washington’s response to a proposal to reopen the Strait of Hormuz within seven days.
However, supply risks remained as the conflict entered its eighth month. The US imposed fresh sanctions on Thursday targeting individuals, networks and 17 vessels accused of transporting Iranian crude, oil products and petrochemicals.
The Strait of Hormuz previously handled shipments equivalent to about 20% of global oil and fuel supplies, making threats to shipping in the waterway a key source of market volatility.
Meanwhile, Hurricane Isaias disrupted US production in the Gulf of Mexico, where about 1.3 million barrels per day, or 62.9% of current output, had been shut in as of Thursday, according to the US Marine Minerals Administration.
Reuters
