Oil prices tumble as Democrats secure US Congress control

International oil benchmarks came under heavy selling pressure on Thursday as the US dollar weakened following Democratic victories in midterm congressional elections, with Brent crude sinking below $94 per barrel for the first time in two months and precious metals climbing to multi-week highs, according to trading data.

Oil markets slide on election results

Democrats secured control of both the Senate and House of Representatives in Tuesday's vote, ending Republican dominance on Capitol Hill while also capturing several governorships including in Texas where Gina Hinojosa defeated incumbent Greg Abbott. Former President Donald Trump said he was willing to accept the election results and expressed readiness to work with the new Democratic majority, easing concerns about prolonged political uncertainty.

Investors viewed the outcome as a potential constraint on Trump's trade, fiscal and foreign policies, particularly amid mounting economic pressure from the US-Israeli war with Iran. Brent crude fell to $94.33 per barrel by 0608GMT after touching a two-month low below $94, while US benchmark West Texas Intermediate slipped to $86.66 before recovering to $87.34.

Dollar weakens, euro gains

The US dollar index extended losses from the previous session, falling to 101.06 as investors assessed the altered political landscape in Washington. The weaker dollar lifted the euro to $1.1263, its highest level since early October, with the single currency drawing additional support from European inflation data showing annual price growth accelerated to 4.0% in October — its highest level since September 2023.

European Central Bank officials signaled possible future interest rate hikes to curb wage-driven inflation, providing further momentum for the common currency. Lower energy prices are expected to ease global inflationary pressures, reducing concerns about potential near-term interest rate increases by major central banks.

Gold rallies on haven demand

Precious metals advanced sharply on dollar weakness and declining US Treasury yields as investors sought haven assets. Gold climbed toward $4,150 per ounce, reaching a two-week high before trading at $4,134 at 0608GMT.