Oil drops to two-month low as Middle East output surges

Oil prices fell to a two-month low on Thursday as Middle East production surged and US-Iran tensions remained subdued, with Brent crude dropping 1.54 percent to $91.22 a barrel and West Texas Intermediate slipping 1.5 percent to $85.26. Gulf output is nearing pre-war levels, with Saudi Arabia reporting a 26 percent jump in October production and Iraq hitting a wartime high, while exporters have adapted by using alternate routes like the East-West pipeline to bypass the Strait of Hormuz. Diplomatic progress remains limited, as Iran's security council secretary stated the country will not remove enriched nuclear material, a key US condition for negotiations, though traders hope the Democrats' midterm victory could hasten an end to the nine-month conflict.