WTI crude oil prices dropped $11.37 this week as political shifts in Washington and stabilizing Gulf exports prompted traders to strip away the war premium associated with the Iran conflict.
December WTI has shed $11.37, or 11.10%, from an opening price of $102.39, breaking to $86.65 and trading near $91.58 early Friday. The drop is driven by U.S. midterm results giving Democrats control of Congress, raising hopes of a quicker end to the Iran conflict, plus recovering Gulf exports near 18 million barrels per day. Traders are stripping out the war premium, and bearish pressure is likely to persist into next week.
Traders removed part of the war premium after the U.S. midterm results gave Democrats control of Congress, raising hopes the Iran conflict will de-escalate, while Gulf crude exports recovered close to pre-war levels near 18 million barrels per day.
The article flags $94.70 as the key level for the week ending November 13: a sustained move above $94.70 (strengthening over $95.50) could lead to a retest of $104.99, while a sustained move below it keeps the downside in focus, with a swing bottom at $86.00.
WTI crude oil futures suffered a sharp weekly decline, shedding over 11% to trade near $91.58 as traders unwound geopolitical risk premiums. The sell-off followed U.S. midterm election results that handed control of Congress to Democrats, fueling market optimism for a de-escalation in the Iran conflict. Despite bullish inventory data, the market is prioritizing political developments and recovering Gulf export volumes.
Traders removed part of the war premium after the U.S. midterm results gave Democrats control of Congress, raising hopes the Iran conflict will de-escalate, while Gulf crude exports recovered close to pre-war levels near 18 million barrels per day.
The article flags $94.70 as the key level for the week ending November 13: a sustained move above $94.70 could lead to a retest of $104.99, while a sustained move below it keeps the downside in focus, with a swing bottom at $86.00.