The key facts

  • Brent rose ~2.7% to $97.20 per barrel after three sessions of declines and a slump of more than 8% the day before
  • European gas rose ~1.5% to €89.35 per MWh, rebounding from a level of around €85
  • The market remains under pressure: LNG supplies from the Persian Gulf are disrupted, storage in Europe is depleted, and cold weather forecasts are raising demand

A rebound after three sessions of declines

Energy prices partially recovered on Thursday from sharp losses caused by the outcome of the US midterm elections and hopes for a diplomatic resolution of the war between the US and Iran. According to Anadolu, the Brent benchmark rose by about 2.7% to $97.20 per barrel as of 13:30 GMT, while European natural gas gained around 1.5% to €89.35 ($100.25) per megawatt-hour.

What lay behind the slump

The rise followed three consecutive sessions of declines: on Wednesday Brent plunged by more than 8% and traded near a two-month low. The sell-off was triggered by the Democrats' victory in the US midterm elections — it raised expectations that increased congressional oversight of military spending could step up pressure on President Donald Trump to bring the conflict to an end. Traders continued to assess whether the election results would improve the prospects for negotiations, with Qatar acting as mediator between Washington and Tehran.

Factors holding back the recovery

European gas prices also recovered earlier losses: on Thursday afternoon they fell to €85 per megawatt-hour amid optimism about diplomatic efforts. However, according to the outlet, risks to supplies remain: liquefied natural gas shipments from the Persian Gulf region are still disrupted ahead of winter, despite the recovery of exports from countries in the region. Additional pressure on the market comes from forecasts of colder weather in northwestern Europe, which is expected to boost heating demand while storage facilities are depleted, and risks to shipping and energy supply in the region continue to cloud the outlook.