Brent crude dips below $90 a barrel for first time since August
Traders expect the U.S. to hold off on further strikes on Iran after Republicans lost the midterm elections
Brent is falling on hopes for diplomatic progress between the U.S. and Iran after the U.S. elections / Photo: MeshCube/Shutterstock
Brent crude dipped below $90 a barrel on Tuesday for the first time since August. Futures for January delivery fell just under 3.4% to an intraday low of $89.21 a barrel. Meanwhile, futures for West Texas Intermediate, the U.S. benchmark, retreated 3.4% to an intraday low of $83.88 a barrel.
Oil was down for a second straight session after posting its biggest weekly drop since April 2020. The selloff deepened as traders grew more hopeful that the war in the Middle East would end soon, Bloomberg reports. U.S. President Trump is under pressure to end the war with Iran after Republicans lost the midterm elections. Trump later said further strikes on Iran would probably be unnecessary.
Arne Lohmann Rasmussen, chief analyst at A/S Global Risk Management, told Bloomberg that the “market is betting Trump won’t resume strikes after the midterm blue wave.” He added, “Crude could fall further, but I think the biggest move is behind us.”
Oil traders are also awaiting monthly market reports from three major forecasters this week. The U.S. Energy Information Administration reports later Tuesday, OPEC on Wednesday, and the International Energy Agency on Friday.
