By Yuka Obayashi and Siyi Liu
TOKYO/SINGAPORE, Nov 12 (Reuters) - Oil prices rose on Thursday after recovering from earlier losses, as persistent geopolitical tensions in the Middle East offset pressure from rising regional crude output.
Brent futures advanced 45 cents, or 0.49%, to $93.21 a barrel by 0732 GMT. US West Texas Intermediate crude climbed 27 cents, or 0.31%, to $86.80.
Both contracts fell more than $1 per barrel in early Asian trading.
"We are currently in a 'no war, no peace' situation
which is allowing Middle East oil production to recover despite the deadlock in US–Iran negotiations," said Ole Hansen, head of commodity strategy at Saxo Bank.
Middle East production that has returned after recent disruptions is pressuring crude prices, though persistent geopolitical risks are likely to cap further downside, Hansen said.
Iranian security chief Mohsen Rezaei said in televised remarks Iran will not allow even a single particle of enriched nuclear material to leave the country and there will be consequences if the US launches new strikes.
Washington has said nuclear issues must be part of any initial negotiations with Iran aimed at ending the eight-month-old war, while US officials downplayed the need for further military strikes.
The comments from Iran and US officials highlighted the obstacles to a broader agreement that could ease tensions around the Strait of Hormuz, a key route for global oil shipments.
In the waterway, tankers are still ablaze, oil spills are washing ashore, and drones and missiles have hit infrastructure across the region.
Elsewhere, Russian and Ukrainian negotiators agreed to a major prisoner exchange after two days of peace talks in Abu Dhabi that ended on Wednesday, although US mediators said differences remained on other major issues, including territory.
Ukrainian President Volodymyr Zelenskiy said Kyiv hoped to achieve concrete results on resolving the war this year.
OPEC+ crude production rose in October, driven by higher Saudi Arabian output despite ongoing shipping disruptions through the Strait of Hormuz.
US crude stocks rose by 9 million barrels in the latest week, market sources said, citing data from the American Petroleum Institute. Official data from the US Energy Information Administration is due on Thursday, delayed a day because of a US national holiday on Wednesday. [EIA/S] [API/S]
(Reporting by Yuka Obayashi in Tokyo and Siyi Liu in Singapore; Editing by Tom Hogue, Jamie Freed and DJ Yap)
