Energy sector falls as Democratic sweep dents Iran war risk premium
XLE•The S&P 500 Energy Sector fell 3% as oil prices dropped 2.5%, after Democrats captured control of Congress in the midterm elections, denting the risk premium for further escalation of the Iran war.
1. Oil and energy shares fall
Brent futures fell 2.54% to $100.97 a barrel, while U.S. West Texas Intermediate crude futures declined 2.57% to $93.62. SEB Research commodities chief analyst Bjarne Schieldrop said a large risk premium had left oil prices after Trump stood down from threats of immediate strikes on Iran following the midterm elections. ExxonMobil fell 2.9% and Chevron slipped about 2.6%; oilfield services companies Baker Hughes, SLB and Halliburton declined between 3% and 4%.
