Oil falls as Trump plays down prospect of new Iran strikes
Brent slipped 0.85% to US$97.48 a barrel, while West Texas Intermediate lost 0.35% to US$90.51.
Oil prices declined at the start of trading on Nov 9 after US President Donald Trump indicated that further attacks on Iran were highly unlikely as negotiations progressed towards ending the conflict. Both countries nevertheless reported attacks involving ships around the Strait of Hormuz.
At 0138 GMT, Brent traded at US$97.48 a barrel after losing 84 cents, or 0.85%. West Texas Intermediate was priced at US$90.51 a barrel, a decline of 32 cents, or 0.35%.
The declines erased modest gains from Friday's settlement. Brent had recorded a 17% weekly fall, its sharpest since the Covid pandemic began and its largest absolute weekly decline in LSEG records going back to 1988.
Speaking to CNN, Trump linked the need for further military action to whether a strong agreement was signed. KCM Trade chief analyst Tim Waterer said investors were still assessing whether Trump's stance represented a durable policy change following the US midterm elections.
JPMorgan said recovering Middle Eastern shipments, increased output elsewhere and weak demand had left global oil supply exceeding consumption. Its Friday report estimated September's surplus at 1.1 million barrels per day, increasing to 1.4 million bpd in October.
Iraqi Foreign Minister Fuad Hussein told Al Jazeera that Iraq had reached an understanding with the US allowing its oil exports to pass through the Strait of Hormuz using a route near Oman. He put Iraq's losses from the war and export disruptions at US$60 billion.
