Gorila Capital news
Oil eases as renewed US-Iran diplomacy cools supply fears
· comeco
Crude prices fell on Thursday as fresh US-Iran peace efforts reduced the risk premium built up this month. Brent had topped $116 a barrel on 23 October, a six-month high, amid tensions in the Gulf. Headlines have swung both ways all week, keeping intraday ranges wide.
Our view
Oil is trading on headlines, not inventories, so moves can reverse quickly. Easing crude helps inflation-sensitive currencies and takes some pressure off central banks. We would not read one day of diplomacy as a trend; risk events around the US midterms remain.