'Midterm elections' and 'Iran' effect on the oil market: Prices fell sharply

Oil prices in global markets have entered a downward trend with the expectation that the results of the US midterm elections may ease the tension in the Middle East and open the doors to a diplomatic solution. In international futures markets, the barrel price of January term Brent oil decreased to 94.07 dollars.

Brent oil, which climbed to $104.96 during the day yesterday but closed the day at $94.62, is trading at $94.07, losing 0.6 percent of its value as of 09.35 today. At the same time, the December term barrel price of West Texas Intermediate (WTI) crude oil is at the level of 87.06 dollars.

This decline in prices was influenced by the success of the Democrats in the US midterm elections, which strengthened the possibility of a diplomatic solution in the ongoing war with Iran. According to unconfirmed results, the Democrats won 240 seats and the Republicans won 147 seats in the House of Representatives race, increasing expectations that President Donald Trump's military field of action will narrow and his search for an agreement will accelerate.

'IRAN WAR' EMPHASIS FROM TRUMP AND VANCE

Evaluating the election results, Trump attributed the main reason for the defeat against the Democrats to the "Iran war" and the "high cost of living" triggered by this war. In order to re-consolidate the Republican voters, US Vice President JD Vance; It was reported in the press that he had set new priorities such as "ending the Iran war, fighting inflation and reshaping relations with Israel".

A remarkable evaluation regarding the US elections also came from the Iranian side. Major General Muhsin Rezai, Secretary General of Iran's Supreme National Security Council, stated that the war started by Trump is preparing his own political defeat.

Analysts state that with the recovery of shipments in the Strait of Hormuz, the market has become oversupply again, but geopolitical risks in the region have not completely eliminated the possibility of a sudden increase in prices.

THE DECLINE IN US STOCKS IS BALANCED BY THE PRICES

A sharper decline in oil prices is curbed by the decreasing oil stocks of the USA. According to US Energy Information Administration (EIA) data, commercial crude oil stocks in the country decreased by approximately 900 thousand barrels last week, falling to 409 million 800 thousand barrels. Market expectation was for a decrease of 1.7 million barrels.

In the same period, the country's strategic crude oil stocks decreased by 400 thousand barrels to 282 million 200 thousand barrels, and gasoline stocks decreased by 200 thousand barrels to 209 million barrels.

Experts note that technically, $102.47 in Brent oil can be viewed as resistance and $89.61 as support zone.