Investing.com– Oil prices fell early-Friday as markets dialed down fears of a Middle East escalation after U.S. President Donald Trump said there would be no new attacks on Iran before the midterm elections.
But losses in crude were limited by continued disruptions in Middle Eastern supplies, while markets also braced for outages in the U.S. Gulf coast stemming from Hurricane Isaias, which is set to make landfall in the coming days.
West Texas Intermediate crude futures for November fell 0.46% to $91.07 a barrel by 19:12 ET (23:12 GMT). They surged over 3% on Thursday, and were trading flat for the week.
Brent oil futures for December settled up 3.9% at $104.13 a barrel on Thursday, and were up nearly 2% this week.
Crude trimmed some intraday gains on Thursday after Trump said Washington would not be attacking Iran before the midterm elections in November, after media reports said such a move was being considered.
The U.S. president also flagged “productive discussions” with Iran. Separately, Iranian media reports showed the country reviewing an American response to its proposal to reopen the Strait of Hormuz.
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Iranian attacks on tankers in Hormuz hit their highest level last week of any week since the U.S.-Iran war began in February, which saw shipping levels in the region fall sharply. The development sparked sharp gains in crude.
Continued clashes between Saudi Arabia and Yemen’s Iran-backed Houthis also kept markets on edge over more disruptions in Middle East supplies.
U.S. Gulf coast braces for Hurricane Isaias
Oil prices were also supported by increasing anxiety over disruptions caused by a hurricane in the Gulf of Mexico.
Isaias was seen strengthening into a hurricane on Thursday, and is set to make landfall over the weekend. Several oil and gas majors, including BP, Chevron, and Shell, were seen evacuating their offshore facilities in the region.
The Bureau of Safety and Environmental Enforcement said 1.28 million barrels of oil per day– roughly 63% of daily oil production in the Gulf coast– had been shut in due to the looming storm.
A total 121 platforms were evacuated, while about 57% of daily natural gas production was shut in.
Original Article
Oil falls slightly after Trump says no Iran attack before midterms
Oil settles below session high after Trump says no Iran attack before midterms
Gold inches up amid weaker dollar and bond rout halt, but oil surge caps gains