Oil jumps 5%, then pares gains after Trump says no attack on Iran in October
Shell, Chevron, BP curtail Gulf of Mexico output over Hurricane Isaias threat
Oil prices surged nearly 5% on Thursday, Oct 8, before retracting gains following US President Donald Trump's statement that the US would not launch an attack on Iran prior to the midterm congressional elections in November. Brent crude futures climbed US$3.48, or 3.5%, to US$103.73 a barrel, while US West Texas Intermediate crude rose US$2.69, or 3.1%, to US$91.
Both contracts hit their session highs, surpassing US$5 a barrel, driven by concerns about potential US strikes on Iran and a potential supply loss from Hurricane Isaias in the US Gulf of Mexico. Later, Trump announced productive talks with Iran, with Teheran reviewing the possibility of reopening the Strait of Hormuz within seven days, according to Foreign Minister Abbas Araqhchi.
Meanwhile, Syria was reportedly considering providing military assistance to Saudi Arabia in its conflict with the Iran-backed Houthis in Yemen. Oil prices had settled lower on Wednesday after the International Energy Agency announced plans to accelerate oil stock releases and prioritize diesel supplies, amid record fuel prices and disruptions from the Iran conflict.
Threats to oil shipping in the Gulf and Strait of Hormuz, responsible for about 20% of global oil shipments pre-war, have intensified in October, contributing to price increases.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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