Crude benchmarks fell sharply across the week after U.S. midterm election outcomes triggered an eight percent single-day plunge on hopes for an end to the nine-month-old war. The downturn was arrested by successive attacks on commercial vessels across the Gulf and the Strait of Hormuz on Wednesday and Thursday. According to ANZ strategist Daniel Hynes, Iran maintains control over the waterway, leaving total oil transit operating at under 60 percent of normal capacity. Maritime security officials caution that maritime threats remain close to historic highs.
Key points
Shifting political control in the United States Congress initially sparked widespread inv…: Shifting political control in the United States Congress initially sparked widespread investor expectations of military de-escalation with Iran.
Persistent naval strikes against oil tankers in key Middle Eastern waterways have establi…: Persistent naval strikes against oil tankers in key Middle Eastern waterways have established a price floor for crude markets.
Maritime monitoring agencies confirm that hostile incidents against commercial shipping v…: Maritime monitoring agencies confirm that hostile incidents against commercial shipping vessels remain near historically elevated levels.
Sources checked by our analysis pipeline: 1
BEIJING, Nov 6 : Oil prices are set for a sharp weekly drop on expectations of a de-escalation of the Iran war after US President Donald Trump's party suffered election losses, but Middle East supply concerns from the conflict continue to provide a floor for the market.
Brent crude futures for January rose on Friday by $1.57, or 1.6 per cent, to $99.86 a barrel as of 0222 GMT. US West Texas Intermediate futures climbed $1.10, or 1.22 per cent to $91.62 a barrel. Both contracts gained for a second day.
Still, the Brent contract is on track to drop by 12 per cent this week after the December contract expired on October 30, while WTI is set to drop 12.1 per cent this week.
The contracts plunged earlier this week on expectations that US Congressional elections on Tuesday, which swung the Senate and House of Representatives to the Democrat party and from Trump's Republicans, could lead to a de-escalation of the US-Israeli war against Iran, now in its ninth month.
Energy markets are recalibrating as severe geopolitical friction in the Middle East and ongoing strikes on Russian infrastructure continue to throttle international refinery output. Compounding these physical supply disruptions, shifting political dynamics in Washington have introduced fresh policy uncertainty following legislative changes in the U.S. Congress. As a result, product markets face persistent tightness that has pushed vital fuels like diesel to historic levels.
Domestic equities face immediate downward pressure as steep overnight tech losses on Wall Street trigger a broader rout across Asian exchanges. However, market observers anticipate that the retreat will be tempered by cheaper crude energy costs and insulated local supply chains. Profit-booking is set to take center stage following a multi-day winning streak that lifted benchmark indexes to multi-month highs.
A six-day surge capped by India's strongest single-day equity performance in seven months is facing pressure from a sharp global technology retreat. Wall Street and major Asian benchmarks tumbled overnight following disappointing semiconductor earnings and growing anxiety over artificial intelligence infrastructure expenditures. Nevertheless, domestic markets could see muted downside due to sustained relief from sliding crude oil expenses and substantial foreign capital commitments.