Oil falls after John Bolton sacked[/rtl]
[rtl]Release date:: 2019/10/10 23:37 • 68 times read[/rtl]
Oil prices fell on Tuesday after US President Donald Trump fired national security adviser John Bolton, the chief architect of Trump's tough stance on Iran, sparking speculation that Iranian crude exports could return to the market.
But the market has been bolstered by reassurances by the new Saudi energy minister that output cuts by the Organization of the Petroleum Exporting Countries and its allies will continue.
Brent lost 21 cents to settle at $ 62.38 a barrel, while US West Texas Intermediate crude futures closed down 45 cents, or 0.8 percent, at $ 57.40 a barrel.
Trump suddenly sacked Bolton amid differences over how to deal with foreign policy challenges on issues such as North Korea, Iran, Afghanistan and Russia.
"The market saw it as a sign that the Trump administration may become less hawkish about Iran, begin talks and possibly return Iranian oil," said Phil Flynn, an analyst at PricewaterhouseCoopers in Chicago.
Iran's crude oil exports have fallen more than 80 percent due to the reimposition of U.S. sanctions after Trump withdrew last year from the 2015 nuclear deal between Tehran and world powers.In May, Washington ended exemptions it had granted to some Iranian oil importers to completely stop Tehran's exports.
The market has come under additional pressure from the US Energy Information Administration to cut its forecast for spot crude oil prices, said Bob Yoger, director of energy contracts at Mizuho.
In its latest monthly report on short-term estimates, the administration trimmed its forecast for the average price of WTI on the spot market to $ 56.31 a barrel in 2019 from $ 57.87 in the August report.
The administration also cut its forecast for Brent spot prices in 2019 to $ 63.39 a barrel on average from $ 65.15.