The oil prices rise again after a decline of more than 8% in the previous session on Thursday, as investors thought that the massive victory of the Democratic Party in the U.S. midterm elections could increase the pressure to end the war with Iran on President Donald Trump
THE BRENT CRUDE FUTURE THAT ENDS IN JANUARY, WHICH IS THE GLOBAL BENCHMARK, ROSE BY 4.9% OFF AT $99.25 PER BARREL, WHILE THE AMERICAN WEST TEXAS INTERMEDIATE (WTI) FUTURE FINISHED AT $3.5% TO $91.20 PER BARREL. BOTH BENCHMARKS WERE AT THE LOWEST LEVEL AFTER AUGUST 31 ON WEDNESDAY
Democrats won both House of Representatives and Senate, weakening the political status of Trump and expected Democratic-controlled Congress could ban the funding of military operations and push the administration towards a bargaining solution
Trump acknowledged that the war with Iran contributed to his party’s election defeat, while Vice President J.D. Vans also questioned the political and economic expenses of this conflict
Investors pointed this electoral outcome to potential de-scalation, allowing more oil flow to the Straight of Hormuz – which is an important shipping root for global energy supply
Trump said that the U.S. doesn’t have any plans to attack any further against Iran, however this week Washington made a limited strike on the Iranian’s Qashm Island, which he told defensive operations
The large motivating factors were low on Thursday for energy market players, as attention was largely on the heavy drop of Wall Street. With the control of both Houses of Democrats, the concern grew that the party can rule the AI industry more and slow down the expansion of large data centers, leading to a decline in the AI trade
“This tech-led correction is caused solely by the values destined from reality. Thursday’s market action shows that stocks are going up due to enthusiasm and hype, and not because of the Fundamentals, and that’s happening in the Tech Stocks, ” said David Bensen, the chief investment officer of the Bansen Group
He also said that instead of trying to time the end of this tech-stock washout, we would like to completely avoid it and pay attention to more defense-oriented parts of the market, such as consumer staples and energy stocks. These sectors probably don’t seem as exciting, but they have stable cash flows and are companies that have long extended their dividends
Scott Kanovsky and Aniron Mitra contributed to this article
72,000 stocks. Which win you missed this month?
YOU READ THE FILINGS, CHECK THE NUMBERS AND MAKE AN OPINION. A PERSON CAN DO THIS FOR FINE-GRAINED 72,000 STOCKS, WHILE AI IS DOING IT WITH A NEW UPDATED LIST EVERY MONTH, INCLUDING SMALL-MEDIUM CAPS, ENERGY, HEALTH SECTOR, DIVIDEND-FOCUSED, ETC. SELECTION BASED ON MORE THAN 100 FINANCIAL METRICS IS CLEARLY STATED, SO YOU CAN SEE IT IN A PERIOD OF THREE YEARS. OUR FLAGSHIP TECH TITANS STRATEGY S&P HAS RETURNED FROM 500 TO 2.3 TIMES
Conclusion for Crude Oil Traders:
THE OIL PRICES HAVE REBOUNDED AFTER THE DEMOCRATIC WIN, BUT THE MARKET IS STILL UNSTABLE. TRADERS SHOULD TAKE A LOOK AT THE TECHNICAL LEVELS OF BRENT AND WTI, AS WELL AS THE GEO-POLITICAL RISK, ESPECIALLY IRAN-US RELATIONS, SHOULD BE TAKEN INTO ACCOUNT. SUSTAINABILITY IS BEING SEEN IN DEFENCE-ORIENTED SECTORS AND ENERGY STOCKS, SO IT MAY BE WISE TO BUILD POSITIONS IN THESE AREAS TO LIMIT RISK