Brent falls 1.7% to $90.99 a barrel
Key points
- Brent crude futures fell 1.7% to US$90.99 a barrel, while US West Texas Intermediate (WTI) dropped 1.8% to US$85.20 at 0759 GMT on Tuesday.
- Prices extended Monday's losses after President Donald Trump indicated he would hold off on further military strikes against Iran for now.
- OPEC production increased in October, but continued shipping risks around the Strait of Hormuz remain a concern for oil markets.
Oil prices fell for a second session on Tuesday as Brent crude dropped 1.7% to US$90.99 a barrel and US West Texas Intermediate (WTI) declined 1.8% to US$85.20.
Brent had already fallen 5.85% on Monday, reaching its lowest level since August 31, as traders reduced expectations of prolonged Middle Eastern supply disruptions.
"The market continues to prioritise President Trump's more conciliatory tone toward Iran since the midterms," said Tim Waterer, chief market analyst at KCM Trade.
Trump said he would hold off on new military strikes for now but maintain a naval blockade in the Strait of Hormuz, while OPEC oil production increased in October, led by Saudi Arabia, Kuwait and Iraq.
Brent has retreated approximately 22% from its six-month high of US$118 reached on October 30 as concerns about renewed US-Iran military escalation eased.
Eurasia Group analyst Gregory Brew said Brent prices may struggle to fall below US$90 without lasting de-escalation and a US-Iran agreement, while continued shipping attacks keep supply risks elevated.
Frequently asked questions
More from United States
Hesai reports stronger financial performance with revenue up 34.3%
Vodafone posts €21.9B H1 revenue as adjusted EBITDAaL reaches €6.5B
Honda Q2 profit falls 39% as EV costs reach ¥484.8 Billion
HIVE posts $84.9 million fiscal Q2 revenue
McEwen Q3 net loss widens to $36.7 million
ASE revenue rises 47.1% to NT$88.6 billion
