West Texas Intermediate (WTI) crude traded near $91 a barrel Friday as traders, Reuters reported, weighed election-linked hopes for easing Iran tensions against tanker attacks that kept supply risks in view.
Reuters reported WTI at $91.00 a barrel at 6:29 a.m. ET (11:29 UTC), up 48 cents, or 0.5%. The benchmark was on pace to close the week about 13% lower, Reuters said. Brent crude was on pace for a 16% weekly decline, which Reuters described as its steepest weekly percentage drop since the start of the COVID-19 pandemic.
Reuters said a reduction in regional tensions could make room for additional crude exports, while vessel attacks continued to bolster prices. It also reported that spot premiums for Middle Eastern crude had fallen back to levels recorded before the conflict. Janiv Shah, a Rystad oil market analyst, told Reuters, “The crude market is loosening to a state of oversupply based on the balance.”
Democrats won control of Congress in the Nov. 3 midterm elections, the Associated Press reported. In pre-election coverage, the AP said the war and its effect on U.S. gasoline prices posed vulnerabilities for Republicans. Reuters associated Republican losses with increased market optimism for a possible de-escalation.
The UK Maritime Trade Operations (UKMTO) said on Nov. 5 that two unidentified projectiles struck a tanker late Nov. 4 about 50 nautical miles north of Madinat ash Shamal, Qatar. The alert offered no confirmed details about the crew's condition, damage to the tanker or environmental effects. EconoTimes previously reported on WTI’s pullback as Hormuz shipping risks persisted.
In a Nov. 5 White House video, U.S. President Donald Trump said, “They’re not doing anything without our approval,” referring to Iran’s nuclear program. Reuters said traders were waiting for firmer evidence of an agreement with Iran. Trump said a decision would come but did not give a timetable in his remarks.
