Brent crude falls below $90 for first time since August on Iran hopes
Brent crude briefly dropped below $90 a barrel on Tuesday for the first time since August. Traders cited hopes that the US-Iran conflict could de-escalate.
For information only, not investment advice. Prices change quickly: check the time and source of every figure.
- Brent touched a low below $90 on Tuesday, the first time since August, and settled at $91.49, according to CNBC.
- US WTI crude settled at $86.04 a barrel.
- Traders cite peace hopes, not firm evidence of progress, Gulf News reported.
Oil prices fell on Tuesday after US President Donald Trump said the war with Iran could end fairly soon. Brent crude briefly slipped below $90 a barrel for the first time since August, CNBC reported.
According to CNBC, Brent settled down 1.17% at $91.49 a barrel, with a session low of $89.16. US West Texas Intermediate crude fell 0.93% to settle at $86.04. Gulf News put Brent's Tuesday low at $89.65 and said it was the first time below $90 since 31 August.
Gulf News reported that Brent had settled on Monday at $92.57, down 5.85%. Early on Wednesday 11 November it was quoted at $91.98, down 0.64%. Brent was about 23% below its 30 October peak near $118, and both Brent and WTI have lost around 20% this month.
Trump said after meeting Qatar's prime minister: "We're seeing momentum toward the end of this conflict. I think it's going to be ending fairly soon," He also said "Iran militarily is effectively over," according to CNBC. Gulf News reported he planned to hold off further strikes after appeals from regional countries but would keep the US naval blockade in the Strait of Hormuz.
ING strategists Ewa Manthey and Warren Patterson said: "The market has continued to unwind some of the geopolitical risk premium built into prices in recent weeks as expectations grow that the conflict between the US and Iran could move towards de-escalation," CNBC reported.
Supply signals also weighed on prices. CNBC said crude flows through the Strait of Hormuz have largely recovered, and Gulf News said LNG traffic through the strait reached its highest level since the war began. Reuters, cited by Gulf News, reported that Middle Eastern producers were cutting prices to attract buyers amid oversupply concerns.
Risks remain. Gulf News noted a fresh attack on a Saudi pipeline near Medina and continuing tanker incidents. CNBC said some analysts still see little chance of a lasting peace deal. Items to watch include Qatar-mediated talks, Hormuz flows, OPEC output and US inflation data.
Background
khabr.pk reported on 27 October that Brent fell more than 6% to about $110 as regional mediators headed to Tehran. On 3 November Brent fell 1.5% to $103.20 on hopes of a US-Iran deal, and on 6 November it was between $98.29 and $99.90. On 10 November khabr.pk reported Trump saying the war was militarily effectively over, which Iranian officials dismissed as fake news.
Why it matters for Pakistan
Pakistan's fuel prices and import bill follow global oil prices. khabr.pk's records show petrol at Rs338 per litre and high-speed diesel at Rs371 per litre on 10 November. The interbank dollar closed at Rs276.65 that day. Lower crude prices feed into fuel price decisions, though the reports do not say when any change would follow.
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