Oil loses more than 8% amid US congressional elections — RMF24

Oil prices on global markets fell sharply amid political changes in the United States: on Wednesday, commodity prices dropped by more than 8%. On Thursday, quotations continued to decline. A barrel of US WTI crude cost $87.16, 1.09% less than before, while Brent stood at $94.20, having lost 0.44%.

Expectations regarding the war with Iran

Investors link the market dynamics to the Democrats' victory in the additional elections to the US Congress. According to RMF24, the Democrats won majorities in the House of Representatives and the Senate, including securing at least seven Senate seats previously held by Republicans.

The market links the price decline to expectations that a shift in the balance of power in Congress could accelerate steps to end the war with Iran. Dennis Kissler, senior vice president of trading at BOK Financial Securities Inc., said that Democratic control of Congress could limit US military spending and lead to a faster end to the war.

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US fuel stocks are declining

At the same time, stocks of oil and petroleum products in the United States continue to decrease. The US Department of Energy reported that oil inventories fell by 0.9 million barrels last week, to 409.8 million barrels. This is the fifth consecutive week of decline.

Gasoline inventories decreased by 0.2 million barrels, to 209 million barrels. Stocks of diesel and heating fuel fell by 3.6 million barrels, or 3.5%, to 99.3 million barrels. According to the publication, distillate inventories dropped below 100 million barrels and reached their lowest level since 2003.

Despite the latest decline, WTI has risen by 51.6% since the start of the year, while Brent has gained 54.6%.