Brent crude rebounds above $97 as energy prices recover

Energy prices recovered some of their recent losses on Thursday after sharp declines driven by the US midterm election results and hopes for a diplomatic resolution to the US-Iran war, Anadolu Agency reported.

Brent crude, the international benchmark, rose about 2.7% to $97.20 a barrel as of 1330 GMT. European benchmark natural gas prices gained about 1.5% to €89.35 ($100.25) per megawatt-hour.

Brent rebounded after three consecutive sessions of losses. On Wednesday, it fell more than 8%, trading near its lowest level in two months.

The sell-off followed Democrats’ victory in the US midterm elections, which raised expectations that greater congressional scrutiny of military spending could increase pressure on President Donald Trump to pursue an end to the conflict.

Traders continued to assess whether the election outcome would improve prospects for negotiations, with Qatar mediating between Washington and Tehran.

European natural gas prices also reversed earlier losses after falling towards €85 per megawatt-hour on Thursday, as optimism over diplomatic efforts weighed on energy markets.

Supply concerns persisted, however, as liquefied natural gas deliveries from the Gulf remained disrupted ahead of winter.

Forecasts of colder temperatures across northwestern Europe were also expected to increase heating demand, adding pressure to a market facing depleted storage levels.

Despite a rebound in exports from Gulf producers, risks to shipping and energy supplies in the region continued to cloud the outlook.