Oil Falls for Fourth Day as US Election Results Ease Iran War Fears

Oil prices fell for a fourth day on Thursday as analysts predicted the Republican Party's losses in US Congressional elections may reduce the risk of further escalation in the US-Israeli war on Iran. Brent futures dropped 1.03% to $93.65 a barrel, while US West Texas Intermediate crude fell 1.29% to $86.98. A weakened President Donald Trump, facing a Democratic Congress able to constrain military options, has greater incentive to seek a deal, according to sources close to Gulf government circles. Crude shipments through the Strait of Hormuz have recovered to near pre-war levels, pushing the global oil market back into surplus. Analysts caution the selloff may prove short-lived, as geopolitical risks remain unpredictable and the incoming Congress will not take office until January. Commercial oil inventories in major consuming countries are near 15-year lows, and US crude, gasoline, and distillate stocks all fell last week as demand hit a yearly high.