Oil prices edged higher on Wednesday as investors weighed the U.S. midterm results against the conflict with Iran. Conflicting signals from Washington and Tehran added to market uncertainty, while a draw in U.S. crude inventories offered some support.
Oil prices edged higher on Wednesday as investors assessed what the U.S. midterm elections mean for the conflict in the Middle East. Brent futures expiring in January rose 0.6% to $104.20 per barrel, while West Texas Intermediate (WTI) gained 0.5% to $96.59 per barrel as of 01:57 ET.
Democrats secured majorities in both the House of Representatives and Senate, a setback for President Donald Trump's Republicans. The result could complicate the administration's policy agenda, but investors stayed focused on whether Washington would pursue more military action against Iran or seek a diplomatic resolution.
Mixed signals from Washington and Tehran
Trump's conflicting signals have added to market uncertainty. The United States carried out what officials described as defensive strikes against Iranian air defence installations on Qeshm Island, near the Strait of Hormuz, earlier this week. Trump then said Washington had no immediate plans for further strikes.
Tehran and Washington are reviewing fresh proposals from mediators, Bloomberg reported, citing a diplomat briefed on the matter. Iran, however, said the U.S. response to its conditions for reopening the strait was unsatisfactory. A senior Iranian official told Reuters the two countries remained far from an agreement.
The strait remains a key concern for crude oil markets because shipping disruptions could constrain global supplies. Another oil tanker was attacked in the Strait of Hormuz, adding to concerns about energy shipments in the region.
Inventory draw lends support
Before the vote, expectations of renewed military action had helped push crude prices to a six-month high, but diplomatic signals then triggered a sharp reversal.
U.S. inventory data offered some support. The American Petroleum Institute reported that U.S. crude inventories fell by 5.267 million barrels in the week ended October 30, compared with analysts' expectations for a 2.1 million-barrel increase. Gasoline inventories rose by 1.427 million barrels, while distillate stocks fell by 270,000 barrels, according to the API figures.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
