Oil edges down as investors await US midterm election results

Oil prices fell on Wednesday as market participants awaited the outcome of the US midterm elections and its potential implications for Middle East peace negotiations. Brent crude futures dropped by 26 cents, or 0.25%, to $103.34 per barrel, while West Texas Intermediate (WTI) futures declined by 53 cents, or 0.55%, to $95.56 per barrel. The previous day, Brent had slipped over 1% to its lowest level in nearly four weeks, as traders analyzed ongoing talks aimed at resolving conflicts in Ukraine and Iran.

The US midterm elections were underway, determining whether President Donald Trump's Republican Party would retain control of Congress for the remainder of his second term. Markets closely monitored the progress of talks to end the US-Israeli war with Iran, as Qatar intensified mediation efforts to prevent further escalations of attacks following the elections.

A senior Iranian official disclosed to Reuters that Iran and the United States were still far from reaching an agreement to resolve their ongoing war. Despite the US carrying out "defensive" strikes on Iran's Qeshm island to target surface-to-air missiles used against US assets, senior officials stated that the strikes were limited and not indicative of a return to major combat operations.

US President Trump assured the Financial Times that the US had no immediate intentions of striking Iran, expressing satisfaction with the diplomatic progress thus far.

Crude oil inventories experienced a significant decline, with US crude stocks falling by 5.27 million barrels in the week ending October 30, according to data from the American Petroleum Institute. Eight analysts surveyed by Reuters anticipated an average increase of around 880,000 barrels in crude inventories. Gasoline stocks rose by 1.43 million barrels, while distillate inventories decreased by 1.19 million barrels compared to the previous week, as reported by market sources.

The data was deemed supportive of oil prices, according to Haitong Futures. Official data from the US Energy Information Administration was scheduled for release at 10:30 a.m. EST (1530 GMT) on Wednesday.