Oil prices tumbled on Monday after President Donald Trump said a new military offensive against Iran was unlikely. Brent crude fell 4.39 percent to $94.02 a barrel, while WTI dropped 4 percent to $87.14 a barrel, both readings taken at about 10:30 Brasília time.
Trump softens war talk
Trump had suggested on Sunday that military operations could resume following last week’s legislative elections. But he added he would hardly order new attacks on Iran while negotiations to end the conflict remain ongoing, a remark that tempered fears of fresh escalation just a day later.
Iran’s government, for its part, reiterated it would respond to any attack hitting American and Israeli targets. No large-scale US military action had been seen so far.
Surplus warnings add pressure
The retreat follows a brutal week for crude. Brent had already dropped 16 percent over the previous week, its largest weekly loss since the start of the pandemic.
JPMorgan said in a report released on Friday that the market was heading toward a new surplus, citing normalising Middle East exports, higher output elsewhere and weak demand. The bank estimated a surplus of 1.1 million barrels a day in September, widening to 1.4 million barrels a day in October.
Source: JPMorgan
