Oil edges down as investors await US midterm election results

Oil prices fell sharply to their lowest levels in more than two months after Republicans lost control of Congress in the US midterm elections. Investors saw the result as increasing pressure on President Donald Trump to seek an end to the US-Israeli war with Iran, which could reduce risks to oil supply.

Brent crude settled at $94.62 a barrel, down 8.7 per cent, while US West Texas Intermediate fell 8.3 per cent to $88.12. Analysts said a peace deal could become more likely, though others warned the political shift might also lead to escalation; Iran and the US were reported to remain far from an agreement. Gulf exports averaged 17.1 million barrels per day in October, about three-quarters of pre-war levels, while US crude stocks fell by 865,000 barrels to 409.8 million.