(Oil & Gas 360) – Oil prices fell below $90 per barrel on Tuesday, November 10, for the first time since August as President Donald Trump’s comments suggesting reduced military escalation against Iran reinforced expectations of recovering Middle Eastern petroleum supplies and a potential global crude surplus.Brent crude futures declined to approximately $89.95 per barrel during early U.S. trading, while West Texas Intermediate fell to $84.56. Both benchmarks extended losses from Monday, when Brent settled 5.85% lower.The decline follows a sharp retreat from late October, when Brent reached approximately $118 per barrel amid concerns that the United States could intensify military operations against Iran following the midterm elections.Speaking after discussions with Qatar’s prime minister, Trump indicated that additional U.S. military strikes were unnecessary for now and suggested that the conflict could be approaching an end.However, the United States intends to maintain its naval blockade, and Iranian officials have disputed reports of progress toward direct negotiations.The absence of a formal agreement leaves considerable uncertainty surrounding maritime security and future petroleum shipments through the Strait of Hormuz.Despite continuing attacks on shipping, regional crude exports have recovered substantially.A Reuters survey found that OPEC production increased by approximately 1.38 million barrels per day in October to 22.87 million barrels per day, supported by higher output from Saudi Arabia, Kuwait and Iraq.ING analysts reported that oil flows from the Middle East are approaching prewar levels, although transportation arrangements remain disrupted and tanker freight rates continue to reflect heightened security risks.The recovery in production is occurring as global petroleum demand shows signs of weakness following months of elevated energy prices.JPMorgan estimated that global oil supplies exceeded consumption by approximately 1.4 million barrels per day in October, raising concerns that additional production could place further pressure on prices.The prospect of renewed Russian oil exports is another consideration as Russian and Ukrainian officials prepare for U.S.-brokered peace discussions.For institutional investors, the decline in crude prices could reduce revenue and cash flow expectations for upstream producers, particularly those with higher operating costs or significant capital spending commitments.Lower feedstock costs may benefit refiners, although profitability will depend on refined product demand, regional crude discounts and transportation expenses.Natural gas and LNG markets may also remain sensitive to developments around Hormuz, where shipping conditions continue to influence international energy trade.The latest price movements demonstrate how quickly expectations can change when geopolitical risks ease while physical supply improves.Nevertheless, continued military activity, unresolved negotiations and elevated shipping costs could reverse market sentiment.For energy investors, the central issue is whether recovering production will create a sustained surplus or whether renewed disruptions will restore the geopolitical premium that supported crude prices earlier this year.Disclaimer This informational, opinion, and insights article is provided for informational purposes only and does not constitute investment, legal, or financial advice. The views expressed are based on publicly available information and market conditions at the time of publication and are subject to change without notice.