Crude oil slipped to $91 per barrel on Thursday from $93 earlier in the session, after US President Trump played down the likelihood of an imminent strike on Iran that could reignite tensions in the Middle East. He indicated that talks with Tehran had been productive and that the US would not take military action against Iran before the midterm elections early next month.
Even so, prices remained well above the one-month low hit on Wednesday, as recent attacks on loaded tankers in the Persian Gulf stalled a fragile recovery in exports from GCC producers. Adding to supply concerns, disruptions emerged in the Gulf of Mexico, where Chevron and Shell began scaling back production and evacuating offshore staff ahead of Tropical Storm Isaias. As of Wednesday, about 25.1% of US Gulf oil output and 16.4% of natural gas production had been shut in.
Earlier EIA data also showed a further drawdown in the US Strategic Petroleum Reserve, bringing it closer to multi-decade lows.
