The price of Brent crude fell below $90 per barrel for the first time since August
Traders expect the U.S. to refrain from launching new strikes against Iran following the Republicans' election defeat
Brent prices are falling on hopes of diplomatic progress between the U.S. and Iran following the U.S. election / Photo: MeshCube/Shutterstock
On November 10, the price of Brent crude fell below $90 per barrel for the first time since August. At their intraday low, January futures contracts dropped nearly 3.4% to $89.21 per barrel.
U.S. WTI crude oil futures fell 3.4% to $83.88, their low for the day.
Oil prices are falling for the second day in a row this week—after last week ended with the sharpest drop since April 2020. Selling pressure intensified as traders hoped for a swift end to the war in the Middle East, according to Bloomberg. U.S. President Donald Trump is facing pressure to end the war with Iran following the Republicans’ defeat in the midterm elections. Trump subsequently said that new attacks on Iran would likely not be necessary.
“The market is assuming that Trump will not resume the strikes following the Democrats’ victory in the midterm elections,” noted Arne Loman Rasmussen, chief analyst at A/S Global Risk Management, in a Bloomberg report. “Oil prices may fall even further, but I believe the main move is already behind us.”
This week, oil traders are also awaiting monthly market reports from three key industry agencies: the U.S. Energy Information Administration later on Tuesday, OPEC on Wednesday, and the International Energy Agency on Friday.
This article was AI-translated and verified by a human editor
