GLOBAL oil prices remained under pressure on Wednesday as investors weighed developments in the Middle East and renewed diplomatic efforts against signs of tighter US crude supplies, while the US dollar’s strength kept the ringgit around RM4.09 per dollar.
Brent crude held below US$114 a barrel after falling for two consecutive sessions, while another market report put crude below US$100, highlighting a discrepancy in the supplied price data.
Markets were monitoring Israeli election developments that could influence the direction of the regional conflict. Exit polls indicated opposition leader Gadi Eisenkot held a narrow lead over Prime Minister Benjamin Netanyahu, although neither bloc had secured a majority and vote counting remained underway.
Investors were also assessing diplomatic efforts following a meeting between officials from Saudi Arabia, Pakistan and Turkey and Iranian leaders on Monday. Iran’s Supreme Leader Mojtaba Khamenei had called for an end to the current state of “neither war nor peace”.
In the United States, crude inventories fell by two million barrels in the week ended Oct 23, signalling tighter supplies and providing some support to oil prices.
The currency market, meanwhile, was focused on the Federal Reserve’s policy decision, with traders widely expecting US interest rates to remain unchanged while looking for signals on the possibility of a December move.
The US dollar index, which measures the currency against six major peers, rose 0.3% to 102.40 on Tuesday, its highest level since Oct 14. The yield on the US 10-year Treasury note was little changed at 4.9967%.
Fed funds futures indicated a 91% probability that the Federal Open Market Committee would leave rates unchanged, according to the CME Group’s FedWatch tool.
“The Fed doesn't need to hike today to move markets,” said Chris Weston, head of research at Pepperstone Group Ltd in Melbourne. “It simply needs to change the perceived probability of hiking in December.”
The euro was steady at US$1.1129, while the British pound was unchanged at US$1.3307. The dollar rose 0.1% to 158.03 yen.
In Malaysia, the US dollar traded at RM4.0865 on Wednesday, down 0.03% from the previous session, according to exchange-rate data. The ringgit had weakened 0.09% over the past month but strengthened 2.41% against the dollar over 12 months.
Separately, Bitcoin was little changed at US$80,736.07, while Ether edged up 0.1% to US$2,345.25. -October 28, 2026
