Brent futures dipped 26 cents, or 0.25%, to $103.34 a barrel by 0157 GMT, while US West Texas Intermediate crude futures fell 53 cents, or 0.55%, to $95.56.
Oil prices had already eased more than 1% in the previous session to their lowest level in nearly four weeks as traders weighed talks to end the wars in Ukraine and Iran.
Vote counting is underway in the US midterm elections, which will decide whether President Donald Trump’s Republican Party retains control of Congress for the remainder of his second term. Markets are watching for any progress in talks to end the US‑Israeli war with Iran, as Qatar has stepped up mediation efforts to avert an escalation of attacks after the elections.
A senior Iranian official told Reuters that Iran and the United States remain far from a deal to end their war. The United States carried out “defensive” strikes on Iran’s Qeshm island targeting surface‑to‑air missiles used against US assets, a US official said on Tuesday. Another official said the strikes appeared limited and did not signal a return to major combat operations. President Trump told the Financial Times that the United States had no immediate plans to strike Iran.
US crude inventories fell by 5.27 million barrels in the week ended October 30, according to data from the American Petroleum Institute, versus an average expectation of a rise of about 880,000 barrels. Gasoline stocks rose by 1.43 million barrels, while distillate inventories fell by 1.19 million barrels. “Diesel inventories remain tight, while gasoline stocks rose more than expected. The data are broadly supportive of oil prices,” said Haitong Futures in a note on Wednesday.
Official data from the US Energy Information Administration is due at 10:30 a.m. EST (1530 GMT) on Wednesday.
Investors will be closely watching the US midterm results and any developments in Middle East peace talks for clues on the future trajectory of oil prices.
