Global oil prices hit two-month low after sharp 8.7% drop
Brent crude settles at USD 94.62 per barrel as markets anticipate reduced tensions in the Middle East and improved supply prospects.
Global oil prices have fallen to their lowest level in more than two months after international crude benchmarks recorded a sharp decline, reflecting changing expectations about geopolitical tensions and global energy supplies.
Brent crude futures dropped USD 8.98, or 8.7%, to settle at USD 94.62 per barrel on Wednesday, November 4. US West Texas Intermediate (WTI) crude fell USD 7.97, or 8.3%, to settle at USD 88.12 per barrel.
Both benchmarks recorded their lowest closing levels since August 31.
Oil prices extended their decline on Thursday, November 5, with Brent crude falling to around USD 93.82 per barrel and WTI trading near USD 86.92 per barrel during morning trading.
The latest decline marks the fourth consecutive session of losses for oil benchmarks.
US midterm elections influence oil market sentiment
The decline comes as investors assess the potential implications of the US midterm election results, in which Democrats secured major gains in Congress, increasing expectations that President Donald Trump could face greater political pressure to seek an end to the conflict involving Iran.
Markets are increasingly pricing in the possibility of reduced military escalation, which could ease concerns about disruptions to crude oil shipments from the Middle East.
The region remains critical to global energy supplies, particularly because of the Strait of Hormuz, a major shipping route for international oil trade.
Supply outlook adds pressure on prices
Expectations of improved oil supply have also contributed to the decline, as traders reassess the risks of prolonged disruptions to energy shipments.
However, uncertainty surrounding diplomatic efforts between Washington and Tehran continues to create risks for the global oil market.
Analysts have warned that any renewed escalation in the region could quickly reverse the recent decline and trigger fresh volatility in international crude prices.
The movement in global benchmarks is closely watched by oil-importing countries, including Pakistan, where international crude prices influence domestic fuel costs alongside exchange rate movements, taxes and other pricing adjustments.
