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Oil prices fall nearly 2% as US-Iran uncertainty overshadows supply concerns
Oil prices fell sharply on Wednesday, November 4, reversing earlier gains as investors assessed the implications of Democratic victories in the US midterm elections for Washington's military campaign against Iran.
Both major benchmarks retreated toward four-week lows, with hopes of diplomatic progress reducing the geopolitical premium that had supported crude throughout October.
Price overview
Brent crude futures fell 1.85% to $101.68 a barrel at 13:10 GMT, while US West Texas Intermediate (WTI) futures declined 1.82% to $94.34 a barrel.
Both benchmarks had risen approximately $1 earlier in the session before reversing direction.
US-Iran negotiations in focus
President Donald Trump indicated that Washington had no immediate plans for further strikes against Iran, encouraging expectations that diplomatic negotiations could gain momentum.
Qatar has intensified mediation efforts, although Iranian officials maintain that substantial differences remain between the two countries.
The Democratic takeover of Congress has added uncertainty over the administration's next steps in the conflict.
Gulf exports remain constrained
Oil shipments from the Persian Gulf have recovered from earlier disruptions but remain below pre-war levels.
Exports of crude, condensates and refined products averaged 17.1 million barrels per day in October, compared with 18.9 million in September.
US inventories unexpectedly decline
American Petroleum Institute figures indicated that US crude inventories fell by 5.27 million barrels last week, contrary to expectations for an increase of approximately 880,000 barrels.
Official government inventory figures are scheduled for release at 15:30 GMT.
Market outlook
Brent faces immediate support around $100, while resistance stands near $104.
WTI could test support around $93, with resistance near $97.
Further progress toward a US-Iran agreement could extend the decline, although renewed disruptions to Gulf shipping remain a significant upside risk.
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