Susanna Riva In recent days, international markets have witnessed a significant decline in oil prices . A sharp decline, triggered by the recent U.S. midterm elections, resulted in a drop of more than 8% in a single session, pushing major benchmarks to record lows.
The next day, the pressure on the markets eased, but the negative trend remained evident.
Futures contracts continued to yield, albeit at a slower pace, suggesting a possible near-term stabilization.
The sharpest drop since the midterm elections
The Democratic victory in the midterm elections fueled expectations of a potential acceleration in the resolution of the conflict between the United States and Iran . This scenario prompted traders to drastically reduce their positions, causing WTI to slide 8,26% to $88,15 a barrel.
Meanwhile, Brent crude , the international benchmark, fell 8,59%, closing at $94,70. These movements represented the sharpest decline in recent months, highlighting the energy sector's sensitivity to geopolitical developments.
WTI reaction
The WTI futures contract for December delivery was the hardest hit, dropping 8,26% to $88,15, marking one of the biggest daily drops of the year.
Analysts have interpreted this trend as a warning signal, stressing that a reduction in geopolitical tension could reduce demand for strategic reserves.
Brent trend
Benchmark Brent crude for January delivery followed a similar trajectory, falling 8,59% to $94,70 a barrel. Brent, more sensitive to fluctuations in the European and Asian markets, responded slightly faster than WTI, reflecting global concerns about oil inventories and potential production cuts.
Sign of slowdown in the next session
In subsequent trading, prices showed a slight resumption of their downward momentum. December WTI contracted more modestly, falling 0,7%, settling at $87,5 a barrel. Meanwhile, January Brent crude lost just 0,18%, reestablishing itself at $94,45. These figures indicate that, although downward pressure persists, the market is beginning to find a new equilibrium after the shock phase.
Details on the December WTI contract
WTI's slight retrenchment suggests investors are reassessing their hedging strategies. The 0,7% decline was fueled by a combination of factors: a slight decrease in U.S. refining requirements and a moderate recovery in strategic inventories. Despite this, the price remains below $90, a level considered psychologically significant for the market.
Details on the January Brent contract
Brent crude, down 0,18%, showed the same moderation trend. Relative stability was supported by a slight easing of geopolitical fears, as well as signs of a possible production cut by OPEC+. The price of $94,45 remains close to the $95 threshold, a key benchmark for European traders.
Oil prices suffered a sharp setback related to US political dynamics, but have since shown signs of gradually slowing their decline. Market observers will continue to closely monitor geopolitical developments and OPEC+ decisions, as both will remain crucial to the future performance of WTI and Brent.