NYMEX Overview: Oil Futures Rebound From Sharp Selloff as Traders Weigh Iran Diplomacy — OPIS

Oil futures climbed Thursday, recovering some ground after the previous session's steep losses, as traders weighed the potential for renewed U.S.-Iran diplomacy and ongoing recovery in Middle Eastern oil supplies.

As of 11:35 a.m. ET, January ICE Brent crude was trading $2.77 higher at $97.39/bbl, with the February contract trading $2.02 higher at $94.35/bbl.

December West Texas Intermediate was up $2.262/bbl, with January WTI up $2.27 at $89.37/bbl.

In refined products, the December ULSD contract was trading 10.96cts higher at $4.3151/gal, while the January contract traded 9.4cts higher at $4.2057/gal.

December RBOB edged 0.97ct higher to $2.7383/gal, with January inching up 1.47cts to $2.6944/gal.

Thursday's gains followed Wednesday's selloff, which sent both crude benchmarks down more than 8% as Democrats' victories in the midterm elections fueled expectations of increased pressure on President Donald Trump to pursue a diplomatic resolution to the Iran conflict. The rebound came as traders reassessed those expectations.

BOK Financial said in a Thursday note that Wednesday's decline was likely overdone, pointing to heavy sell-stop activity below the 50-day moving average.

BOK characterized Thursday's price action as a retracement, adding that expectations for greater congressional scrutiny of U.S. war funding and recovering Middle Eastern oil flows could affect Iran's negotiating position.

MUFG analysts said that the premium for near-term Brent deliveries had narrowed, with the spread between the nearest futures contracts falling below $2.50/bbl from more than $5/bbl in mid-October, reflecting easing concerns about immediate supply disruptions amid growing expectations for a diplomatic resolution to the conflict.

Supply recovery has added to the changing market outlook. J.P. Morgan estimated that Middle Eastern oil exports averaged 20.7 million b/d in October, up from a low of 9.8 million b/d in March. The bank also estimated that global oil supply exceeded demand by 1.1 million b/d in September, with the surplus widening to 1.4 million b/d in October. However, security threats and elevated shipping costs continue to complicate energy shipments through the Strait of Hormuz.

Meanwhile, U.S. inventory data showed declines in both crude and distillate stocks. The Energy Information Administration reported Wednesday that domestic crude stocks fell by 865,000 bbl to 409.8 million bbl last week, while distillate inventories declined by 3.6 million bbl to 99.3 million bbl.

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

Reporting by Allegra Fradkin, afradkin@opisnet.com; Editing by Dean Visser, dean.visser@dowjones.com

(END) Dow Jones Newswires

November 05, 2026 12:38 ET (17:38 GMT)