Oil prices are trading in opposite directions on Thursday, with Brent crude posting a modest gain while West Texas Intermediate (WTI) retreats, as investors assess whether the Democrats’ sweeping victory in the United States midterm elections could accelerate efforts to end the war in the Middle East.
Brent, the European benchmark, is up 0.56% at $95.15 per barrel, after falling roughly 8% in the previous session. Since the start of the week, the crude has shed nearly 20% of its value. WTI, the US benchmark, is down 0.25% at $87.90 per barrel.
US Vice President JD Vance acknowledged that voter discontent over the war and over Washington’s relationship with Israel contributed to the Republican defeat in the elections. Senate Democratic Minority Leader Chuck Schumer, meanwhile, pledged to work towards ending the conflict, which has now entered its ninth month.
The Democratic victory, which gave the party control of both chambers of Congress, affords it greater influence over budgetary decisions and could limit the US administration’s capacity to fund the continuation of military operations against Iran.
Despite the war, crude oil exports from the Persian Gulf have recovered, exerting downward pressure on oil prices, although petroleum product shipments remain constrained. These disruptions, alongside the intensification of Ukrainian attacks on Russian refineries, have contributed to rising petrol and diesel prices.
“The increase in crude oil exports from the Middle East, combined with President Trump’s declaration that he has no immediate plans to strike Iran, is keeping crude prices under pressure at this stage,” Dennis Kissler, Senior Vice President of Trading at BOK Financial Securities, told Bloomberg.
According to the analyst, Democratic control of Congress could also “limit US military spending” and contribute to a faster resolution of the conflict.
The election results and signals of restraint from the Trump administration regarding further strikes on Iran were reflected in energy markets on Wednesday, when North Sea oil prices fell to new lows and European natural gas recorded a sharp decline.
On Thursday, the European natural gas benchmark is down more than 3%, trading at around €85 per megawatt-hour.
Despite the downward pressure on oil prices, fuel markets continue to face supply constraints. In the United States, distillate product inventories — a category that includes diesel — fell below 100 million barrels last week, the lowest level since 2003, according to official data cited by Bloomberg.
US crude oil inventories, meanwhile, declined for the fifth consecutive week.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=558565
