Oil steady on Wednesday

Oil prices steadied on Wednesday after a two-day decline as easing tensions in the Middle East shifted market focus toward global supply and OPEC+’s production strategy. Brent crude held above $71 a barrel, while West Texas Intermediate (WTI) traded near $68.

However, Standard Chartered Plc cautioned that the market may be underestimating Middle East risks, noting renewed tensions could surge after the US election. The waning war premium has redirected attention to fundamentals, including weaker demand from China and ample global supply.

Traders are watching OPEC+’s decision on planned production increases, expected in December, and two key events next week — the US election and China’s legislative meeting, which may signal economic stimulus. Meanwhile, US crude inventories fell by 600,000 barrels last week, according to the American Petroleum Institute (API).

Attribution: Bloomberg

Subediting: Y.Yasser