Oil hits lowest since August as Trump holds off on Iran strikes
Oil prices dip as US-Iran tensions ease and supply concerns grow
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.
Context and caution
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.
What's next
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.
