CRUDE WRAP: WTI (Z6) SETTLES USD 0.49 HIGHER AT 86.53/BBL; BRENT (F7) SETTLES USD 1.27 HIGHER AT 92.76/BBL

The crude complex was firmer amid some punchy rhetoric out of Iran. Although energy benchmarks strengthened on Wednesday, they remain a long way off recent highs, given the more constructive tone between the US and Iran over the past week or so. WTI and Brent rose in the European morning after Al Mayadeen reported that Iran’s Rezaei said any new US attack would be met with the targeting of “distant” US military bases as well, and that Iran will not remove any enriched nuclear material from the country. WTI and Brent then gradually moved higher through the European session to highs of USD 88.74/bbl and USD 94.73/bbl, respectively, before paring some of the gains through the US afternoon. Adding to the punchier tone, Fars reported that “naval mines blow up two more illegal tankers in the Strait of Hormuz” overnight, saying they were oil tankers supported by US “fighter planes”. Meanwhile, the WSJ reported around settlement that VP Vance is considering face-to-face talks with a top Iranian security official, in an effort to end a war seen as a drag on the Republican Party. However, plans are reportedly at a preliminary stage.

Trilateral talks between Ukraine, Russia and the US ended in Abu Dhabi on Wednesday. While the tone was broadly constructive, there was no significant breakthrough. As expected, all three sides gave readouts. Russia’s top Ukraine negotiator Medinsky said it seems they are closer to peace, but that a lot now depends on all participants in the process, while Deputy Foreign Minister Ryabkov said there is a foundation for further work. For Ukraine, negotiator Umerov said talks should be multilateral rather than trilateral, with Europe involved, and that there is good momentum towards a solution before end-2026. Lastly, US Envoy Kushner said he and Witkoff will travel to Russia to meet President Putin on Thursday, before meeting Ukrainian President Zelensky. He added that progress was made on Ukrainian security guarantees. However, oil saw some upside as he noted that significant disagreements remain.

In the November MOMR, OPEC left its 2026 and 2027 demand and supply forecasts unchanged from the prior report.