Brent oil prices pull back from peak following Trump's statements
Oil prices, which had risen due to tensions between the US and Iran and supply concerns, declined following statements from Trump.
Following recent multi-week highs, the barrel price of Brent oil is following a volatile course driven by diplomatic messages and supply concerns.
Prices Retreat from the Peak
The barrel price of Brent oil tested $105.92 in yesterday's trading, reaching its highest level since September 17. In today's trading, oil was priced at $103.50 as of 06:00 TSI. Despite the decline from the three-week peak, oil is heading toward a weekly gain of nearly one percent.
Conflict Allegations and Supply Concerns
Concerns that tensions between the US and Iran could escalate are supporting oil prices. Claims that the US is preparing three-day attack plans against Iran and that energy infrastructure could be targeted in potential operations have heightened supply concerns.
Security Risks in the Strait of Hormuz
The intensification of attacks on Thursday targeting tankers navigating the Strait of Hormuz reinforced unease in the market. Security risks in the strait, which is of critical importance for global oil trade, keep concerns alive about potential disruptions in shipments.
Impact of the Hurricane on Production
Hurricane Isaias threatening offshore oil production in the Gulf of Mexico also had an effect on prices. It was reported that producers halted approximately 1.3 million barrels of crude oil production per day due to the hurricane, thereby adding supply-side concerns to geopolitical risks.
Donald Trump's Statements and the Blockade
US President Donald Trump announced via social media that productive discussions were being held with Iran and stated that he would avoid attacking Iran before the midterm elections, which limited the rise in prices. In contrast, Trump emphasized that the US naval blockade on Iranian ports would continue uninterrupted.