Written by: Karim Hammam
Oil prices declined slightly in early trading on Wednesday, as investors await the results of the US elections and developments in regional talks in the Middle East.
Benchmark Crude Prices
Brent crude futures fell 26 cents, or 0.25%, to record 103.34 dollars per barrel. In contrast, West Texas Intermediate (WTI) crude fell 53 cents, or 0.55%, to reach 95.56 dollars per barrel.
Geopolitical Concerns and Demand Forecasts
Markets are awaiting developments regarding potential confrontations between the United States and Iran, amid statements from Iranian officials confirming a lack of desire for escalation. Traders are also monitoring the impact of the US election results on energy policies and potential sanctions.
US Oil Inventories Rise
Data from the American Petroleum Institute showed an increase in crude inventories by approximately 5.27 million barrels during the week ending October 30. Gasoline inventories also rose by 1.43 million barrels, and distillate inventories rose by 1.19 million barrels, putting pressure on prices in the short term.
Anticipation of Federal and Congressional Decisions
A state of anticipation continues in global energy markets, awaiting the Federal Reserve's decisions regarding interest rates, and the new Congress's directions toward geopolitical policies affecting oil supplies from the Middle East.
