The price of Brent crude oil fell by 8.6% to $94.66 per barrel, marking the lowest level since September 4. This price decrease was due to new communications established by the White House regarding the results of Tuesday's midterm elections, attributing Republican losses to the Iran war.
Impact of Trump and Vance's Statements
The price of West Texas Intermediate (WTI) crude oil also dropped by 8.3% to $88.08. Donald Trump stated in an interview with Fox News, "I think this is the price of gasoline," explaining the Republican defeat. Additionally, Vice President J.D. Vance wrote on social media platform X that the war was the reason for these losses and that "any honest conversation about the future must start from there."
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Oil Market Predictions
Oil market analysts believe that increased exports from the Middle East and Trump's statements have put significant pressure on oil prices. Dennis Kessler from BOK Financial stated that Democratic control of Congress might lead to a reduction in U.S. military spending in the region and expedite a peace agreement. Carl Larry from Enverus warned that escalating tensions in Iran might occur before reaching an agreement.
Meanwhile, Iran's Supreme Leader, Mojtaba Khamenei, stated that U.S. hostilities will continue regardless of which party is in power. In the meantime, the Qatari news agency Al-Jadeed reported significant progress in negotiations between the U.S. and Iran. The agency claimed that Washington and Tehran have reached agreements regarding Iran's nuclear program and frozen assets.
Despite this, oil prices recovered some of their previous losses due to the lack of confirmation of these reports by Iranian officials. Meanwhile, the U.S. Department of Energy announced it would loan 300,000 barrels from domestic oil reserves in the Northeast to four companies, equivalent to nearly one-third of the existing reserve. This action followed pressures from senators on both sides after diesel prices rose to over $6.50 per gallon.
In the week ending October 30, U.S. crude oil inventories decreased by 900,000 barrels to 409.8 million barrels, which is 4% lower than the five-year average. Meanwhile, distillate inventories fell by 3.6 million barrels to 13% below the five-year average.
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