Oil settles over 1% higher as supply concerns intensify

Oil prices rose amid concerns over further disruptions to energy supplies in the Middle East

Oil prices rose on Wednesday amid concerns over further disruptions to energy supplies in the Middle East and the possibility of US military strikes on Iran following next week’s midterm elections.

The gains pushed Brent crude back into overbought territory for the fourth time in five days, as concerns grew over near-term supplies and the possibility of a wider military confrontation in the Middle East.

Washington had notified several Middle Eastern countries to prepare for a short but intense military campaign that could begin after the midterm elections scheduled for Nov. 3, The Wall Street Journal reported, citing informed sources.

This came as US President Donald Trump reiterated that the war with Iran would end on his terms, stressing the need to prevent Tehran from acquiring nuclear weapons. Iran rejected this position, according to reports, which said recent proposals by mediators to end the war fell short of a formal offer.

Markets are awaiting Sunday’s OPEC+ meeting, with expectations that the alliance will leave its December oil production targets unchanged. Meanwhile, US data showed a decline in commercial crude inventories last week.