Oil hits lowest since August as Trump holds off on Iran strikes

Crude prices edged lower again early Wednesday (Nov. 11) after Brent briefly broke below $90 for the first time since August, as traders bet that the US-Iran standoff is easing.

The prices (as of 7:36 am Tokyo time, Nov. 11)

• Brent: $91.98 a barrel, down 59 cents, or 0.64% (22-minute delay)

• WTI: $86.04, down 81 cents, or 0.93% (36-minute delay)

• Murban (Platts): $92.07, down $7.10, or 7.16%, but dated Nov. 10, so it reflects Tuesday’s assessment

• Dubai: $93.59, down 3.72%. Brent weighted average: $94.15, down 4.05%. Both carry a one-day delay.

• Natural gas: $3.296, up 2.42%. Gasoline: $2.625, down 0.97%. Heating oil: $4.131, down 1.99%.

Why prices are falling

• Trump’s restraint: Trump said Monday he planned to hold off on further military strikes after appeals from regional countries, but would maintain the US naval blockade in the Strait of Hormuz.

• Monday’s drop: Brent settled Monday at $92.57, down $5.75, or 5.85%, and extended losses in post-settlement trading. Brent dropped below $90 for the first time since Aug. 31 on Tuesday, touching $89.65. That is roughly 23% below its Oct. 30 peak near $118.

• Supply returns: Reuters reported that Middle Eastern producers were cutting prices to attract buyers as recovering Hormuz flows raised oversupply concerns.

• LNG traffic through Hormuz has hit its highest level since the war began, and Russia-Ukraine peace talks are taking place in Abu Dhabi.

Traders point to hopes for a peace agreement, not firm evidence of progress, as key drivers of lower crude rates.

Brent was trading near $91 and WTI near $85 at one stage Tuesday.

Both have lost around 20% this month. A fresh attack on a Saudi pipeline near Medina and tanker incidents continue.

The percentage changes appear measured against Monday’s $92.57 settlement.

Watch Qatar-mediated talks, Hormuz flows, OPEC output and US inflation data.

A deal could extend the slide, while a collapse in talks could quickly push prices back up.