December WTI crude futures fell as low as $83.88 before rebounding to $88.20, recovering much of an early-week slide. The contract remains down $2.63, or 2.90%, for the week, as renewed concerns over Middle East supply risks offset hopes for a less aggressive U.S. stance toward Iran.
The contract opened at $90.83. Prices came under pressure after President Donald Trump played down the prospect of further U.S. strikes on Iran, saying he was unlikely to order new attacks while efforts to end the conflict were progressing. He later said he would hold off for the time being after appeals from regional countries, including Qatar.
Higher Saudi production and a large increase in U.S. inventories added to the selling. WTI reached a two-month low on Tuesday as traders unwound some of the premium built into prices during months of war and shipping disruption.
But no peace agreement had been announced by the United States and Iran, and attacks on vessels and energy infrastructure continued. Traders had been pricing in the possibility of less disruption, not a settlement that had restored normal shipping. Attacks on Saudi energy infrastructure and continued threats to shipping helped bring buyers back. On Thursday, Yemen’s Iran-aligned Houthis claimed attacks.
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