Oil companies edge lower as Democratic sweep dents Iran war risk premium
USO•U.S. oil and gas shares edged lower premarket as Brent fell 1.7% to $101.87 a barrel and U.S. crude slipped 1.2% to $94.96. ExxonMobil fell 1.4%, while ConocoPhillips dropped 3%.
1. Oil shares slip
U.S. oil and gas shares edged lower premarket as oil prices eased after Democrats captured control of Congress in the midterm elections, denting the risk premium for further escalation of the war with Iran. Brent futures fell 1.7% to $101.87 a barrel and U.S. West Texas Intermediate crude futures slipped 1.2% to $94.96.
2. Company moves
ExxonMobil fell 1.4%, Chevron slipped about 1%, ConocoPhillips dropped 3% and Occidental Petroleum fell 0.9%. Marathon Petroleum was down 0.9%. 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.
