Solid Gold Berjangka - Oil prices softened as investors reassessed diplomatic efforts in the Middle East aimed at preventing an escalation of U.S. military strikes against Iran. Brent crude stood at US$114.58 per barrel, while WTI was at US$103.48 per barrel, following a sharp surge in prices previously.
Iranian Foreign Minister Abbas Araghchi stated that Tehran remains open to diplomatic channels. Reports also indicate that U.S. Vice President JD Vance has reached out to Mohsen Rezaei, secretary of Iran’s top security body, raising hopes that communication between the two sides may be opening up.
U.S. President Donald Trump noted that negotiations are underway through mediators, though he could not confirm whether these efforts would ultimately succeed. Such diplomatic developments have the potential to reduce the geopolitical risk premium that had previously driven oil prices higher.
Brent prices had strengthened significantly throughout October, reaching their highest level since April. This surge increased pressure on consumers and complicated efforts by central banks to control inflation, particularly while energy costs remain elevated.
The market is also closely monitoring the U.S. midterm elections on November 3, as well as political developments in Israel. Trump had previously signaled the possibility of continuing military operations against Iran following the elections, while the results of Israel’s elections point to a tight race with no clear path yet toward the formation of a government.
In the physical market, supply indicators remain mixed. Saudi Arabian exports have stayed high, despite attacks on energy infrastructure and vessels in the Strait of Hormuz. In the U.S., crude oil inventories fell by 1.9 million barrels over the past week, reaching their lowest level since July.
Investors will now turn their attention to the earnings reports of major oil companies, including Shell, TotalEnergies, ExxonMobil, and Chevron. The interplay between diplomatic developments regarding Iran, risks to supply, U.S. inventory data, and the performance reports of energy firms will be key factors in determining the future direction of oil prices. (srh)
Source: Newsmaker.id