Oil extends losses, trades near $92 on hopes of easing Iran tensions

Oil prices continued to retreat on Tuesday as markets weighed a lower chance of further US strikes on Iran against continuing risks to shipping through the Strait of Hormuz. Brent futures fell 0.83% to $91.80 per barrel, while WTI declined $1.02, or 0.89%, to $85.96 by 09:18 am PST, Mettis Global reported. President Donald Trump said further attacks were not currently needed, but confirmed the US naval blockade would stay in place.

The softer US position has eased concern about a prolonged supply disruption, although a near-term deal between Washington and Tehran remains uncertain. Iran’s security council chief Mohsen Rezaei rejected reports of possible talks, while OPEC crude output rose in October, led by higher production in Saudi Arabia, Kuwait and Iraq despite export limits. US-brokered discussions between Russian and Ukrainian officials were also due to begin Tuesday, adding another diplomatic development for oil markets to assess.