Oil prices dipped for a second straight day, with Brent crude settling around $114 per barrel. The market remains in a wait-and-see mode ahead of the US midterms on 3 November, as traders anticipate President Trump's next steps regarding Iran. Recent price gains suggest growing expectations of renewed tensions, but a pullback could occur if the post-election period passes without further strikes on Iran.
The gasoil crack has weakened, dropping toward $70 per barrel, its lowest level since early October. Diesel markets have eased after Russia lifted its export ban earlier this month, following a deal with Trump to increase global diesel supplies. Meanwhile, reports indicate the US is considering allowing American oil majors to return to Russia post-war as part of broader negotiations to end the conflict with Ukraine.
In metals, gold rebounded above $4,000 per ounce after briefly dipping below that level. Attention is now focused on the Federal Reserve's meeting today, where no rate change is expected, but markets will scrutinize signals about future monetary policy. Copper prices rose due to tightening supply and strong demand in China, while iron ore prices hit a two-year low amid weak demand and rising supply.
The latest API data showed US crude oil inventories fell by 2 million barrels last week, while gasoline and distillate fuel oil inventories rose by 2.3 million and 420,000 barrels, respectively. The EIA's weekly report is due later today.