Oil falls as Trump downplays prospect of escalation with Iran

Brent crude futures decline 70 cents, or 0.75%, to $91.88 a barrel

Oil prices fell on Tuesday, adding to the previous day's losses after US President Donald Trump downplayed ​the need for military action against Iran "at this point", easing fears of sustained supply disruptions ‌in the Middle East.

Brent crude futures declined 70 cents, or 0.75%, to $91.88 a barrel by 0246 GMT, while US West Texas Intermediate (WTI) futures fell 78 cents, or 0.90%, to $86.07 a barrel. Both benchmarks had fallen 1% ​earlier in the session.

Brent settled down 5.85% in the previous session after sliding to ​its lowest since August 31.

Trump said on Monday he plans to hold off ⁠on new military strikes against Iran for the time being after appeals from countries in the ​region, including from Qatar's prime minister in White House talks.

Trump, in a Reuters interview and a ​later appearance in the White House press briefing room, said he plans to keep up a naval blockade in the Strait of Hormuz for now.

"The market continues to prioritise President Trump's more conciliatory tone toward Iran since ​the midterms," said Tim Waterer, chief market analyst at KCM Trade.

"While attacks on shipping around the ​Strait of Hormuz are still occurring, they have not escalated in a way that has forced a fresh ‌risk ⁠premium into the market," he said.

Read: Oil dives almost 5% as Trump signals restraint

On the supply side, OPEC oil output rose in October, a Reuters survey found, led by gains in Saudi Arabia, Kuwait and Iraq despite continued constraints on exports.

Brent has retreated about 22% from the six-month high of $118 it touched on October 30 as fears ​that Trump might step up ​attacks on Iran ⁠following the US midterms have eased; however, there is still concern shipping could be disrupted.

"Despite the recent selloff, prices are unlikely to fall below $90 ​per barrel for Brent without more durable signs of de-escalation and a ​US-Iran deal," ⁠Gregory Brew, a senior analyst with Eurasia Group, said in a note.

"At the same time, risks to shipping remain high, as Iran continues to attack vessels transiting the Strait of Hormuz," Brew said.

Elsewhere, ⁠Russian and ​Ukrainian officials planned to meet on Tuesday for two days of ​US-brokered talks — their first since February — after Trump suggested last week that a broad peace deal was possible in their ​4-1/2-year-old war and could incorporate Europe's security.