Oil prices edged higher in Asian trading on Wednesday as investors assessed uncertain prospects for a U.S.-Iran peace deal and considered how the U.S. midterm elections might affect the conflict.
As of 20:11 ET (01:11 GMT), January Brent futures had risen 1% to $104.61 a barrel, while WTI futures gained 0.8% to $96.83. Prices had declined in the previous two sessions, with Brent settling at $103.60 and WTI at $96.09 on Tuesday, their lowest levels in nearly four weeks.
The recent losses followed diplomatic efforts that had raised hopes of an end to the conflict. Tehran and Washington are reviewing new proposals from mediators, Bloomberg reported, citing a diplomat briefed on the matter. Qatar has stepped up its mediation, sending representatives to Tehran on Monday for talks with Iranian officials before they returned to Doha.
The possibility of a breakthrough remains unclear. A senior Iranian official told Reuters that Washington’s response to the latest peace proposal was not convincing. Meanwhile, the U.S. carried out limited strikes on Iran’s Qeshm island on Monday, targeting surface-to-air missiles used against U.S. assets.
Investors were also watching the U.S. midterm elections for indications of how the results could affect President Donald Trump’s domestic political position and his administration’s approach to the conflict. Expectations of renewed military action after the vote had helped lift oil to a six-month high, before diplomatic signals prompted a sharp reversal.
U.S. inventory figures provided some support to prices. The American Petroleum Institute reported that crude stocks fell by 5.267 million barrels in the week ended October 30, against analysts’ expectations for a 2.1 million-barrel increase. Gasoline inventories rose by 1.427 million barrels, while distillate stocks declined by 270,000 barrels.
Sources: Investing.com News.