Brent Crude Recovers and Closes Nearly 4% Higher

Oil prices ended Thursday's session higher after three consecutive days of losses. The Brent contract for January reached $98.29 per barrel. WTI for December closed at $90.52.

The recovery followed a drop of more than 8% the previous day. The market reacted to the results of the US midterm elections. The Democratic victory in Congress shifted expectations regarding the direction of American foreign policy.

Democratic leaders such as Chuck Schumer mentioned congressional control over federal spending to push for an end to the conflict in the Middle East. This political environment led to a reassessment of the geopolitical risk premium embedded in commodity prices.

Analysts at ING bank described the recent decline as overdone. The outlook remains uncertain despite the attempt at political reconciliation. Reports of incidents involving oil tankers in the Strait of Hormuz also keep investor attention focused on the flow of global supply.