Oil prices rise on Wednesday

Oil prices rose on Wednesday, recovering from earlier losses as investors monitored developments in the US-Israeli war on Iran and its potential impact on global supplies.

Brent crude futures gained 0.7 per cent to $104.36 per barrel, while US West Texas Intermediate (WTI) crude rose 0.7 per cent to $96.72 at 0730 GMT.

Prices remained volatile as markets assessed Washington’s next move following the US midterm elections, in which Democrats secured majorities in both houses of Congress.

Supply concerns surrounding the Strait of Hormuz continued to support prices, alongside an unexpected decline in US crude inventories. Data from the American Petroleum Institute showed that US crude stocks fell by 5.27 million barrels in the week ended October 30, against analysts’ expectations of an increase of 880,000 barrels.

Meanwhile, markets continued to monitor diplomatic efforts to end the conflict, with Qatar stepping up mediation. However, a senior Iranian official said Tehran and Washington remained far from reaching a deal.

US President Donald Trump said on Tuesday that Washington had no immediate plans to strike Iran, following limited US strikes on Iran’s Qeshm island.

Official US inventory data from the Energy Information Administration was expected later on Wednesday.