Oil prices trimmed gains on Thursday after President Trump said the US would not attack Iran before the Nov. 3 midterm elections.
Brent crude (BZ=F) fell to $103 per barrel, while West Texas Intermediate crude (CL=F) dropped to $90 a barrel.
The move came after Trump posted on social media, “We are having productive discussions with the Islamic Republic of Iran.”
He went on to say that “we will not be attacking Iran at any time prior to the Midterm Elections to be held in the United States on November 3rd.”
The president’s post came after The Atlantic reported that the Trump administration was considering striking Iran before the midterm elections. The outlet said the Pentagon is weighing options, though no final decision has been made.
Oil rose this week amid increased incidents of vessel attacks near the Strait of Hormuz and Houthi-claimed attacks on two airports in Saudi Arabia.
Meanwhile, Hurricane Isaias is nearing the Gulf Coast, threatening to make landfall on Friday. Chevron (CVX) said it is evacuating nonessential personnel from its offshore platforms in the region.
“These factors outweighed the news that the International Energy Agency was accelerating the release of stockpiles of oil and distillates,” noted David Morrison, senior market analyst at Trade Nation, on Thursday.
90.91 -0.58 (-0.63%)
As of 10:14:40 PM EDT. Market Open.
CL=F BZ=F
Higher energy costs are adding to expectations that the Federal Reserve will maintain its tightening stance to curb inflation. The market fully priced in a 25 basis point Federal Reserve rate increase in December.
Bond yields have climbed higher worldwide, with the 10-year yield (^TNX) rising to 5.32%.
Volatile crude oil costs, along with maxed-out refining capacity, have caused refined fuel prices to surge.
Gasoline prices averaged $4.36 per gallon on Thursday, per AAA data. Diesel prices stood at $6.28 per gallon, down $0.02 from Wednesday.
The administration has been looking for ways to ease high energy costs ahead of November’s midterm elections.
On Tuesday, President Trump, responding to a reporter, said he is considering suspending the federal gas tax.
Ines Ferre is a senior business reporter for Yahoo Finance.
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Source: finance.yahoo.com
