Oil Falls as Trump Rules Out Iran Strike Before Midterms; Gulf Storm Cuts 1.3M Barrels Daily

Oil declined after President Donald Trump said the US will not attack Iran ahead of November's midterm elections. West Texas Intermediate fell toward $91 a barrel, giving back part of Thursday's 3.6% gain, while Brent closed above $104. Trump cited "productive discussions" with Iran and said crude was flowing through the Strait of Hormuz in record volumes. The New York Times later reported the US had drawn up plans for three days of strikes on drone and missile arsenals and energy facilities. Crude has had a volatile start to October as the US-Iran war drags on, with futures whipsawed by rising Middle East flows, more vessel attacks and tight product markets. Traders also tracked Hurricane Isaias, expected to reach the northern US Gulf Coast late Friday or early Saturday. Gulf of Mexico producers have shut in about 1.3 million barrels a day, over 60% of regional output.