OIL prices steadied on Thursday as the continued US-Iran impasse and disruption to Russian refining capacity offset signs of recovering crude supply from the Middle East, while a stronger US dollar added pressure on the ringgit.
US West Texas Intermediate (WTI) crude traded at around US$86 a barrel, while Brent crude held near US$92, following significant volatility earlier this week.
Negotiations between Washington and Tehran remain deadlocked, with both sides avoiding further escalation despite unresolved differences over Iran's nuclear programme and the Strait of Hormuz.
A senior Iranian security official said Tehran would not surrender “a single atom” of its enriched nuclear material, rejecting one of Washington's key conditions for peace talks.
Iran has also insisted that the United States lift its sanctions and end its naval blockade before the Strait of Hormuz can be reopened.
Meanwhile, Ukrainian drone attacks have disrupted refineries representing about 30 per cent of Russia's total oil-processing capacity since late October.
However, both oil benchmarks remain more than 20 per cent below their October peaks amid recovering crude supply from the Middle East.
Saudi Arabia reported to the Organisation of the Petroleum Exporting Countries (OPEC) that its crude output surged 26 per cent in October, reaching one of its strongest monthly production levels in recent years.
In currency markets, the US Dollar Index rose 0.67 per cent to 102.917 on Wednesday, extending gains after a 0.5 per cent advance in the previous session and reaching its highest level since April 2025.
The greenback strengthened against all major currencies as investors increasingly anticipated further US Federal Reserve interest rate increases following stronger-than-expected inflation data and hawkish comments from central bank officials.
Fed Governor Christopher Waller said a 50-basis-point rate increase in December could be warranted, while Dallas Fed President Lorie Logan supported at least two more 25-basis-point increases.
Markets were pricing in an approximately 86 per cent probability of a 25-basis-point increase at the Fed's December meeting, with investors also factoring in the possibility of further hikes in January and April.
The dollar's gains were strongest against the Swiss franc and euro, while recovering oil prices helped trim losses in crude markets following a two-day decline.
Against the ringgit, the US dollar rose to around RM4.08 on Thursday, with the exchange rate quoted at RM4.0790, up 0.16 per cent from the previous session.
The US dollar-r inggit pair has gained around 0.2 per cent over the past month, although the ringgit remains stronger by about 1.2 per cent compared with a year earlier.
Analysts' projections point to a softer dollar against the ringgit in the coming months, with the exchange rate forecast at RM4.0480 by the end of the quarter and RM3.9863 in one year. - November 12, 2026
