Oil prices rebounded as fading hopes for a U.S.-Iran deal extinguished recent peace optimism, with Brent hitting $93.90 and WTI rising to $87.98 despite a reported 9-million-barrel build in U.S. crude inventories.
Brent rose nearly 3% to $93.90 per barrel on November 11 after Iran's top security official denied talks with Washington and called reports of a Qatar meeting 'pure lies'. After losing about 21% since the start of November on peace hopes, the collapse of de-escalation expectations is a clear direct price driver, though further direction hinges on whether talks resume.
WTI rose nearly 2% to $87.98 on the same driver as Brent: Iran's denial of talks with Washington extinguished near-term de-escalation hopes after WTI had lost about 17% since the start of November. The move is direct but slightly smaller than Brent's, and a 9-million-barrel API crude build for the week ending November 6 is a bearish counterweight traders overlooked.
Brent crude climbed nearly 3% to $93.90 per barrel on November 11 after Iranian security official Mohsen Rezaei dismissed reports of negotiations with Washington as 'pure lies.' The surge marks a sharp reversal for oil markets, which had shed roughly 21% since the start of November on hopes for a de-escalation of the conflict.
Iran denied it is negotiating with Washington and analysts saw no near-term end to the war, unwinding bets that had pushed Brent down about 21% since the start of November on hopes the war was winding down.
Yes. A US-Iran deal would push expectations toward restoring Gulf flows, though LSEG notes Hormuz traffic would depend on mine clearing, insurance costs and shipowners' willingness to take the risk, so flows would not return quickly.
No. WTI rose nearly 2% to $87.98, less than Brent's nearly 3% jump to $93.90, on the same Iran headline.
The American Petroleum Institute reported a sharp 9-million-barrel build in US crude inventories for the week ending November 6, which traders looked past but which remains a bearish supply signal.