Crude oil prices fall as US midterm results raise hopes of end to West Asia war
Brent and WTI futures weakened alongside domestic contracts, while reports of recovering Persian Gulf exports added to the market’s supply outlook.
On November 5, crude oil futures experienced a decline as the outcome of US midterm elections brought optimism about the potential resolution of the conflict in West Asia. Brent oil futures opened at $93.96, slipping by 0.70%, while WTI (West Texas Intermediate) crude oil futures began at $86.98, down by 1.29%. In the Indian market, MCX crude oil futures for November were at ₹8234, a 1.55% decrease from the previous close of ₹8364, and December futures opened at ₹8177, down 1.62% from ₹8312.
Brent oil futures experienced a further drop to $93.89, a 0.77% reduction, and WTI crude oil futures to $86.95, a 1.33% decrease when the market reopened. Experts attributed the Democratic victory in US elections to the prospect of curtailed financial support for military actions in West Asia. The defeat of Republicans in the midterms was largely due to public dissatisfaction with the war and its impact on US gasoline prices.
US Energy Information Administration (EIA) data released on October 30 indicated a decrease in US crude oil inventories, falling 0.9 million barrels to 409.8 million barrels, 4% below the five-year average. The EIA also reported a drop in gasoline inventories by 0.2 million barrels to 4.2 million barrels, 2% below the five-year average. Distillate inventories decreased by 3.6 million barrels, 13% below the five-year average.
The US petroleum product demand fluctuated, with total products supplied averaging 21.2 million barrels per day, up 4.2% year-over-year. Gasoline product supply averaged 8.6 million barrels per day, a 0.4% decrease year-over-year, while distillate product supply rose by 8.7% to 4.2 million barrels per day. Jet fuel product supply decreased by 2.8% year-over-year.
In other commodity markets, November nickel futures on MCX opened at ₹1518.60, up 1.25% from the previous close of ₹1499.80. On NCDEX, November guar gum contracts traded at ₹16278, a 1.60% increase from ₹16022, and November jeera futures opened at ₹27475, up 0.99% from ₹27205.
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