Oil price drop signals smaller fuel price cuts ahead

Oil prices have fallen below $100 per barrel again following the Democratic victory in the U.S. Congress and renewed hopes for peace talks with Iran, signaling upcoming fuel price cuts, though analysts say reductions will be smaller than the oil decline. Brent crude has dropped nearly 20 percent since Friday to $96 per barrel, with a 9 percent fall on Wednesday after Democrats won congressional control, boosting expectations for a faster end to the Iran conflict. Iran's supreme leader authorized peace negotiations, and President Trump said the U.S. would hold off on attacks. Analysts note the drop reflects hopes rather than confirmed peace, with oil supply still tight and a long recovery ahead before prices return to pre-war levels of $50-60. Fuel prices will decrease in coming days, but diesel costs may fall less due to high heating demand and reduced refined product supplies.