Oil tumbles 9% as investors eye possible end to Iran war after US midterm elections
USO•Brent fell 8.9% to $94.29 a barrel and U.S. West Texas Intermediate dropped 7.8% to $88.54 as investors watched for developments in the Iran war after the midterm elections. U.S. crude inventories fell by 865,000 barrels to 409.8 million, contrary to analysts’ expectations for an increase.
1. Oil prices fall
Oil prices fell sharply in volatile trading as investors awaited Washington’s next move in the U.S.-Israeli war with Iran after Republicans lost control of Congress in midterm elections. Brent was down $9.27 at $94.29 a barrel, while U.S. West Texas Intermediate fell $7.44 to $88.54.
2. War and supply outlook
President Donald Trump said the United States had no immediate plans to strike Iran. Qatar stepped up mediation efforts, though a senior Iranian official said the two countries remained far from a deal. Gulf exports of crude, condensate and refined products averaged 17.1 million barrels per day in October, down from 18.9 million in September and about three-quarters of pre-war levels.
3. U.S. inventory decline
U.S. crude inventories fell by 865,000 barrels to 409.8 million barrels in the week ended October 30, the Energy Information Administration said. Analysts polled by Reuters had expected an increase of 877,000 barrels.
