Crude Oil Futures Decline as Markets Monitor US Midterm Election Results and Inventory Data

Crude oil futures traded lower during Wednesday morning trading sessions as market participants closely monitored the outcome of the US midterm elections. International benchmarks reflected the downward trend alongside domestic commodity exchanges.

At 10:01 am on Wednesday, January Brent oil futures were recorded at $102.95, marking a decline of 0.63 per cent. Meanwhile, December crude oil futures on West Texas Intermediate (WTI) stood at $95.31, down by 0.81 per cent. Domestic trading on the Multi Commodity Exchange (MCX) mirrored these movements during the initial hours of the session. November crude oil futures traded at ₹9,028 against the previous close of ₹9,104, reflecting a decrease of 0.83 per cent, while December futures traded at ₹8,948 compared to the previous close of ₹9,025, down by 0.85 per cent.

Market participants have been closely tracking the US midterm election results. Initial reports indicated developments regarding the control of the House of Representatives, alongside reports suggesting shifts in the Senate following races in North and South Carolina. In connection with the political landscape, US President Donald Trump shared a statement on Truth Social regarding the ballot outcomes.

In addition to political developments, markets are following diplomatic efforts in West Asia. Qatar-brokered initiatives are underway, with a spokesperson for Qatar’s Foreign Ministry noting that the US and Iran are evaluating new proposals put forward by mediators to bridge existing differences.

On the supply side, a recent report from the American Petroleum Institute (API) indicated a decrease in US crude oil inventories. According to the API data, inventories declined by 5.26 million barrels for the week ending October 30.

Other commodities also saw activity during the initial trading hours on Wednesday. November copper futures on the MCX traded at ₹1,344.35, down 1.54 per cent from the previous close of ₹1,365.40. On the National Commodities and Derivatives Exchange (NCDEX), November jeera contracts traded at ₹26,550, up 0.85 per cent against the previous close of ₹26,325. Conversely, December dhaniya futures on the NCDEX traded at ₹15,648, down 0.66 per cent from the previous close of ₹15,752.

"Global commodity markets are highly sensitive to political shifts and macroeconomic indicators. The recent downward movement in crude oil futures reflects how traders react in real-time to political events such as the US midterm elections, alongside supply-side updates like inventory data and diplomatic developments in West Asia. For businesses and enterprises dependent on energy and raw materials, monitoring these interconnected global trends remains crucial for supply chain and financial planning." — Dr. Shishir Gupta, Founder & CEO, StartupLanes