International oil prices trended downward on Wednesday (04/11) following the Democrats’ victory in both chambers of Congress during the US midterm elections, which dealt a significant political blow to Donald Trump.
Read also: Oil: Nearly 10% drop in international prices — Natural gas stabilizes
Trump tells WSJ: War with Iran partly to blame for election results
When asked by the Wall Street Journal how much the war in the Middle East contributed to the Republicans’ poor performance, the American president acknowledged that the conflict with Iran “played a partial role.” He focused particularly on the surge in oil prices triggered by the conflict, rather than the war itself, as hydrocarbon prices have recorded significant gains this year.
Ipek Ozkardeskaya, an analyst at Swissquote, noted: “The new Congress could use its influence over spending to challenge supplemental military funding and increase pressure toward a diplomatic solution (with Iran), once it takes office in January.”
She added: “If, on top of that, the outcome is accompanied by credible negotiations and prospects for safer navigation through the Strait of Hormuz, oil prices could retreat on a sustained basis.”
How oil prices are shaping up
Against this backdrop, around 12:45 PM Greek time, the price of a barrel of North Sea Brent crude for January delivery fell by 1.25% to $102.31. The equivalent American benchmark, WTI crude for December delivery, dropped by 0.74% to $95.38 per barrel.
Since the start of the week, Brent has fallen more than 13% amid growing market optimism surrounding ongoing diplomatic contacts in the Middle East, following several weeks of fears over escalating tensions.
