Oil prices climb as uncertainty over Iran war deepens after US election
Illustrative photo: Oil prices are rising amid uncertainty over a war with Iran following the US elections (collage by RBC-Ukraine)
Oil prices rose on November 4 amid investor expectations regarding the US's next moves in the war with Iran after Democrats won control of both chambers of Congress in the midterm elections, according to Reuters.
Today, Brent crude oil futures rose by 82 cents, or 0.8%, to $104.42 per barrel.
US West Texas Intermediate (WTI) crude oil futures rose by 50 cents, or 0.5%, to $96.59 per barrel.
Mixed signals from US President Donald Trump and the continuation of military strikes amid statements that downplay the risk of further escalation have made it difficult for traders to form a clear picture of the market's future direction.
"I believe some profit-taking and reduction in speculative long positions are justified, particularly after the sharp rally in October," says Priyanka Sachdeva, head of market analytics at Phillip Nova.
She adds that the fundamental risks of disruptions to oil supplies in the Strait of Hormuz region have not gone away.
"An unexpected drawdown in US crude inventories is also offering some fundamental support," Sachdeva says.
US elections
Democrats have secured a majority in both chambers. They have already won the required number of seats in the House of Representatives and hold a lead over Republicans in the Senate.
US President Donald Trump has already acknowledged the results of the midterm elections and promised to work with the Democrats.
However, Trump later threatened to veto Democratic bills.
Trump also unexpectedly acknowledged that it was the war in Iran that drove up gas prices in the US, not Ukraine's strikes on Russian oil refineries, as he had previously claimed.
