Crude oil is on a downward trend with prices declining by more than a per cent It has extended the loss for a second consecutive session after US President Donald Trump reportedly hinted towards de-escalation of conflict with Iran.
President Trump claimed renewed US attacks against Iran to be “highly unlikely”, easing concerns around global energy supply disruption. As per the reports, Iranian officials in the past expressed doubts on US President’s claims regarding the easing of conflict.
Following the US mid-term election Global oil prices declined substantially and the downward trend was further triggered by fresh comments by President Trump.
Brent crude futures declined $1.24 or 1.33 per cent to $91.33 per barrel, while US West Texas Intermediate (WTI) crude futures fell 1.5 per cent or $1.31 to $85.54 per barrel.
Brent crude had settled 5.85 per cent lower in the previous session after touching its lowest level since August 31.
Diplomatic progress involving the US and the Middle East have weighed on the crude prices, however market experts said the downward trend can be affected by the continued geopolitical tensions and prevailing uncertainty over the shipping route security.
“Investors are also awaiting monthly oil supply and demand reports from the US Energy Information Administration (EIA), the Organisation of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) for fresh cues on the global demand and supply outlook,” according to them.
As per the reports, US President’s decision to hold-off the military strikes against Iran was also triggered by intervention from other countries including Qatar.
Despite hopes of decreasing tensions between the US and Iran, US plans to keep up naval blockade in the Strait of Hormuz keeping the concerns around energy supply disruptions through one of the major routes.
On the other hand, Iran’s Supreme National Security Council Mohsen Rezaei dismissed negotiation claims by the US. He, reportedly, denied the reports saying the US should stop spreading what he described as fake news about imaginary talks.
Elsewhere, Russian and Ukrainian officials are scheduled to meet on Tuesday for two days of US-brokered talks, their first such meeting since February.
Meanwhile, gold prices also edged lower on Tuesday, trading around $4,120 per ounce, as investors awaited a key US inflation report for clues on the Federal Reserve’s monetary policy trajectory.
(With inputs from IANS)
