Crude oil prices slipped to $91 a barrel on Friday, retreating after a 3.6% gain in the previous session, as concerns eased over potential Middle East supply disruptions. US President Trump said Washington was engaged in “productive discussions” with Iran and would refrain from any attack on the country ahead of the midterm elections.
At the same time, reports indicated that Iran’s foreign minister said Tehran was reviewing the US response to its proposal to reopen the Strait of Hormuz within seven days. Adding to the downward pressure on prices, China is expected to resume refined fuel exports in October, following a brief suspension during the Golden Week holiday.
However, risks to shipping through the Gulf and the Strait of Hormuz remain, and supply disruptions continued in the Gulf of Mexico, where Hurricane Isaias forced producers to shut in about 1.3 million bpd as of Thursday, according to the US Marine Minerals Administration. For the week as a whole, crude oil prices were little changed.
