Brent crude fell below 90 dollars a barrel on Tuesday, 10 November, for the first time since 31 August, as traders priced in easing fears of new United States strikes on Iran. Brent touched 89.65 dollars by 1334 GMT, down 3.15 percent on the day, before settling at 91.49 dollars a barrel for January delivery, down 1.2 percent. US West Texas Intermediate crude for December delivery settled at 86.04 dollars, down 0.9 percent.

The fall extends a sharp retreat from the six-month high of 118 dollars a barrel reached on 30 October, a drop of roughly 23 percent. Brent had already lost about 5.9 percent in the previous session. US President Donald Trump said on Monday that he planned to hold off on new military strikes against Iran after appeals from governments in the region, including Qatar, and said further strikes would not be necessary for now.

Oversupply adds to the pressure

The price fall was not only about Iran. A Reuters survey showed OPEC crude production rose by 1.38 million barrels per day in October, to 22.87 million barrels per day, adding to expectations of a global oil surplus. Trend-following trading advisers also deepened the sell-off, cutting Brent long positions to 9 percent on Tuesday, from 45 percent the previous session, according to Kpler.

Shipping attacks continue

The market move came even as attacks on tankers in the Strait of Hormuz continued, with oil still leaving the region despite the danger to shipping. Washington has not ruled out further strikes, and the US naval blockade affecting Iranian oil movements through the strait remains in place. Traders are watching whether the diplomatic calm holds, or whether a fresh attack on shipping restores the risk premium.