Oil firms and US futures slip as markets weigh divided government
Brent crude rose 0.8% to $104.42 a barrel by 05:10 GMT in volatile trading, reversing earlier losses, as investors awaited Washington’s next move on Iran after the Democratic sweep. S&P 500 futures were 0.1% lower and Nasdaq futures 0.3% lower, while Japan’s Nikkei fell 1.4%. Brent had settled on Tuesday at its lowest level in nearly four weeks.
“President Trump’s conflicting signals, with military strikes continuing alongside statements downplaying further escalation, have made it difficult for traders to build strong directional conviction,” said Priyanka Sachdeva of Phillip Nova. Industry figures showed US crude stocks fell by 5.27 million barrels last week, against expectations of a rise; official EIA data follow at 15:30 GMT. Sterling firmed about 0.5% to $1.347. The Bank of England is widely expected to raise rates for the first time since 2023 on Thursday, though it is expected to push back against market bets on further increases next year.