Around $95.00: WTI remains lower after US midterm elections

• Geopolitical tensions and US electoral shifts may lift WTI.
• With Democrats taking Congress, traders track possible policy changes alongside US-Iran tensions.
• Following recent price surges, traders lock in profits as US military signals diverge.

$95.00 per barrel is the approximate level for West Texas Intermediate (WTI) during Wednesday’s European session. Prices are retreating after the previous day’s modest advance. Caution ahead of Washington’s decision on the US-Israeli war on Iran could support crude oil prices. The shift follows the Democrats’ capture of Congress from President Donald Trump’s Republicans in the midterm elections. Counting remained under way, with Democrats securing majorities in both chambers for the remainder of Trump’s second term.

Reuters cited Priyanka Sachdeva, head of market insights at Phillip Nova, as saying that "President Trump's conflicting signals, with military strikes continuing alongside statements downplaying further escalation, have made it difficult for traders to build strong directional conviction". In her view, "some profit-taking and reduction in speculative long positions are justified, particularly after the sharp rally in October".

Military operations and diplomatic initiatives are both shaping developments in the region. According to Qatar’s Foreign Ministry spokesperson, the two countries are assessing fresh proposals from mediators aimed at narrowing their differences. Iran’s national security chief, however, said in a social media post that Washington’s response was still unsatisfactory.

Earlier this week, defensive US strikes hit Iranian surface-to-air missile systems that had been used against American assets. The narrow scope of the action, however, points to no immediate resumption of large-scale military operations.

Nasdaq and USD recover as Trump signals openness to Democrats

Rabobank analysts attribute the initial market weakness to the election outcome, noting that “on the back of the Democrat sweep in Congress in the US mid-term election both Nasdaq futures and the USD predictably softened.” They add that “perhaps the bigger surprise is that both have already started to reverse their early losses,” directly linking the recovery to “comments that President Trump is looking to work with Democrats in Congress.” The swift turnaround in sentiment illustrates the speed at which changing political signals can reprice US assets.