Oil falls for a fourth day on expectations for lower risk of Iran war escalation

Oil benchmarks extended their declines for a fourth session on Thursday as investors weighed whether US midterm election results could lower the chance of further escalation in the Iran conflict. Brent was down 1.03% at $93.65 a barrel, while US West Texas Intermediate slipped 1.29% to $86.98. Both had plunged more than 8% in the previous session, reaching their weakest closing levels since August 31.

Business Recorder reported that analysts see the prospect of restored Middle Eastern supply as a factor behind the market’s return to surplus, estimated by JPMorgan at 1.1 million barrels per day in September and 1.4 million in October. However, oil prices could remain volatile: US commercial inventories are near a 15-year low, and US policy has not yet changed, since the incoming Congress takes office in January. The Energy Information Administration also reported that US crude, gasoline and distillate stocks fell last week as demand reached a one-year high.