Brent Crude Drops 3.6% as Trump Downplays Fresh US Military Strikes on Iran
Brent crude dropped 3.6 percent to $94.83 a barrel on Monday as indications of reduced military escalation between the United States and Iran countered persistent shipping attacks near the Strait of Hormuz. International energy traders and commodity market participants recalibrated positions following statements from US President Donald Trump indicating fresh strikes against Iranian targets were highly unlikely while diplomatic talks progressed. US West Texas Intermediate fell 2.9 percent, or $2.66, to settle at $88.17 a barrel.
Widening Supply Surplus Reaches 1.4 Million Barrels Daily
Global crude production surpassed consumption by 1.4 million barrels per day in October, widening from a 1.1 million barrel surplus in September, as recovering Middle Eastern crude shipments combined with rising production elsewhere and sluggish international demand, according to data published by JPMorgan.
The retreat follows a 16 percent plunge in Brent crude last week, which drove the international benchmark to a two-month low of $93.22 per barrel in its sharpest weekly fall since the start of the COVID-19 pandemic.
