Midterms strip out the war premium, but the next two months make shorts a risky bet

AI Summary

Brent crude futures fell 16.6% between October 30 and November 4, with the January contract settling at $94.62 per barrel after a sharp daily drop. The article links the sell-off to U.S. midterm election results and discusses the risks of betting on further declines over the coming months.

Crude futures have just posted their sharpest sell-off since 2020. Brent fell 16.6% between the 30 October peak and 4 November. On that day the January contract settled at $94.62/bbl after an $8.98/bbl drop. The trigger was the Democrats’ sweep of both chambers of Congress, which the market read as raising pressure on Washington to ...