Oil falls as Trump comments on Iran talks ease supply concerns

Oil prices slipped on Friday (Oct 9) as tensions eased between the United States and Iran following President Donald Trump's comments. The US leader assured that no military action against Iran would take place before the November midterm elections, following constructive negotiations aimed at resolving their ongoing conflict. The price of Brent crude futures dropped by US$0.72, or 0.7%, to US$103.53 a barrel, while US West Texas Intermediate (WTI) crude futures declined by US$0.52, or 0.6%, to US$90.97.

Despite this easing of concerns, Brent prices are expected to rise weekly due to a surge in attacks on crude shipments heading out of the Middle East earlier this week. In contrast, WTI is expected to experience a minor weekly decline despite the hurricane approaching the Gulf of Mexico coast in the US, the world’s largest oil producer.

President Trump had stated on Thursday that Washington was engaging in "productive discussions" with Iran, and no attack was planned before the elections. Iran's state news agency reported the same day that the country's Foreign Minister Abbas Araqhchi indicated that Tehran was reviewing the US response to its proposal to reopen the Strait of Hormuz within seven days.

In addition to strained US-Iran relations, the oil market is also grappling with Hurricane Isaias in the Gulf of Mexico. This storm has prompted producers to halt approximately 1.3 million barrels per day, or 62.9% of present oil output, as of Thursday.