Brent Falls to $91.88 as Traders Weigh Trump’s Iran Remarks

Oil futures fell on Tuesday, November 10, as traders weighed President Donald Trump’s indication that he would hold off on further strikes against Iran for the time being. At 02:46 UTC, Brent crude futures were down 70 cents, or 0.75%, at $91.88 a barrel. US West Texas Intermediate futures fell 78 cents, or 0.90%, to $86.07. Both benchmarks had fallen 1% earlier in the session. Brent had settled 5.85% lower on Monday after touching its lowest level since August 31. Tuesday’s quoted price was approximately 22% below the six-month high of $118 reached on October 30. Tim Waterer, chief market analyst at KCM Trade, said traders were focusing on Trump’s more conciliatory tone toward Iran after the US midterm elections. He assessed that continuing attacks near the Strait of Hormuz had not escalated enough to generate a fresh risk premium. Gregory Brew, a senior analyst at Eurasia Group, warned in a note that shipping risks remained high. He said Brent was unlikely to fall below $90 without more durable de-escalation and a US-Iran agreement. At his November 9 White House appearance, Trump said further military action did not seem necessary at that point, while the naval blockade would continue. He said he had discussed Iran with Qatar’s prime minister, Sheikh Mohammed. Trump also said: “But we're locked and loaded, ready to go for any reason that changes.”