Oil retreats as Trump points to further US-Iran contacts
Brent crude and West Texas Intermediate fell below $100 a barrel after Donald Trump described a three-hour US-Iran meeting as productive and said another was planned. The market was also watching Saudi pipeline activity, the regional conflict and an expected Trump-Xi trade summit.
Oil prices fell in Asian trading after US President Donald Trump said American and Iranian representatives had held a productive meeting at the United Nations and would meet again soon. Brent crude dropped 0.9 per cent to $98.41 a barrel, while West Texas Intermediate fell 1.4 per cent to $89.23. Trump’s comments followed a forceful speech at the UN in which he said he faced a major choice between reaching an agreement with Iran and destroying the Islamic Republic.
The two sides remain at an impasse, with Iran keeping the Strait of Hormuz closed and the United States enforcing a counter-blockade of Iranian ports, according to the supplied report. Stephen Innes of Quintex Intel said the meeting had shifted market expectations away from an escalation-only outlook towards a possible diplomatic process, although he said a final deal still appeared distant. Trump has also said oil would fall once the United States wins the war.
Saudi Arabia was another focus for traders. The kingdom reportedly restarted work on its East-West Pipeline after drone attacks and aimed to resume exports later in the week, Bloomberg reported. Aramco was said to be offering some Asian refiners crude from Yanbu, while European buyers would not receive October allocations.
Markets were mixed elsewhere. Hong Kong and Shanghai fell, while South Korea, Taiwan and European equities gained. Investors were also looking ahead to a meeting between Trump and Chinese President Xi Jinping, with trade and possible Chinese influence over Iran expected to feature.
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