Oil prices advanced on Thursday, recovering from earlier declines as geopolitical tensions in the Middle East continued to influence trading despite increased crude production in the region.
Brent crude futures rose 45 cents, or 0.49%, to $93.21 per barrel by 07:32 GMT, while US West Texas Intermediate (WTI) gained 27 cents, or 0.31%, to $86.80 per barrel. Both benchmarks had fallen by more than $1 during early Asian trading.
Ole Hansen, head of commodity strategy at Saxo Bank, described the situation as one of “no war, no peace”, with Middle Eastern oil production recovering despite stalled negotiations between the United States and Iran.
Hansen said returning supply was putting downward pressure on prices, although geopolitical risks could limit further declines.
US-Iran Negotiations Remain Uncertain
Iranian security official Mohsen Rezaei said Tehran would not permit enriched nuclear material to leave the country and warned of consequences if the United States conducted additional military strikes.
Washington has maintained that nuclear issues must form part of initial negotiations aimed at ending the eight-month conflict, while US officials have played down the need for further military action.
Disagreements continued to complicate efforts to reduce tensions around the Strait of Hormuz, a major international oil transportation route. Tanker fires, oil spills and attacks on regional infrastructure remained concerns for energy markets.
OPEC+ Output and US Inventories
OPEC+ crude production increased in October, supported by higher Saudi Arabian output despite shipping disruptions in the Strait of Hormuz.
Meanwhile, US crude inventories rose by approximately 9 million barrels during the latest reporting week, according to market sources citing American Petroleum Institute data.
Official inventory figures from the US Energy Information Administration were scheduled for Thursday, following a one-day delay due to a US public holiday.
Elsewhere, Russian and Ukrainian negotiators agreed to a major prisoner exchange following talks in Abu Dhabi, although disagreements over territory and other issues remained unresolved.
Ukrainian President Volodymyr Zelenskiy said Kyiv was seeking progress towards resolving the conflict during 2026.