Brent falls 8.9% after Trump defeat
By the AFREEQUE newsroom, based on Business Day (South Africa)
Brent crude fell 8.9% to $94.29 a barrel, while US crude declined 7.8% after the Republican defeat in the midterm elections. Investors hope for a de-escalation in the war between the United States and Iran while monitoring decisions in Washington, reports Business Day.
Brent crude fell 8.9% on Wednesday to $94.29 a barrel after Donald Trump’s Republican Party lost control of the US Congress in the midterm elections. The European benchmark crude reached its lowest level since 4 September, while West Texas Intermediate (WTI) fell 7.8% to $88.54, according to Business Day.
Markets reacted to the prospect of a shift in US policy in the war between the United States, Israel and Iran. Donald Trump said he was not planning an immediate strike against Iran, while the Democrats’ takeover of the House of Representatives and the Senate could limit US military spending in the Middle East, explains Dennis Kissler, vice-president of trading at BOK Financial, quoted by Business Day.
Exports of crude oil, condensates and refined products from the Gulf, excluding liquefied petroleum gas, averaged 17.1 million barrels per day in October, compared with 18.9 million in September, according to Vortexa maritime-tracking data. Qatar has meanwhile stepped up its mediation efforts, while an Iranian official quoted by Reuters said Tehran and Washington remain far from an agreement to end their war.
The fall follows the drop in Brent to $108.40 announced on 3 November. It also follows the statement on 4 November in which Trump blamed the Republican defeat on the war in Iran.
