Crude oil prices crash by 10 per cent following US election results

A major upheaval has been observed in the global crude oil market following the announcement of the recent US midterm election results. Due to these election results, crude oil prices have recorded a direct decline of approximately 10 per cent. This major shift in American politics is having a direct impact on the world economy and financial markets.

According to a report by TV9 Gujarati, Donald Trump's Republican Party has suffered significant political losses in this election, while the Democratic Party has strengthened its grip on both houses of the US Congress. These changed political equations in Washington led to heavy selling in the market. During this period, the price of American crude oil, i.e., WTI, fell by 10 per cent, bringing it to the level of $87.68 per barrel.

Brent crude, considered the benchmark for the international market, has also seen a significant decline. Amidst the fluctuations observed in the market, Brent crude prices fell by 9.20 per cent, dropping from $94.08 per barrel to the level of $93.40 per barrel. Along with America's internal politics, potential changes in its foreign policy are also considered responsible for this sudden drop in oil prices.

According to market experts, the strengthening of the Democratic Party in the US Congress could change the country's foreign policy. Investors are hopeful that in the changed political situation, America may now open a path for dialogue with Iran. If talks with Iran begin, concerns regarding the supply of crude oil from West Asia could diminish and the oil supply is likely to increase, which has played a crucial role in reducing prices.

The decline in crude oil prices has brought relief to stock markets worldwide, as many countries' economies were under inflationary pressure due to expensive oil. However, the ongoing geopolitical tension in West Asian countries has not yet fully subsided. In the coming days, the steps taken by the US government will determine whether this decline in prices continues or if the market will see a recovery.