WS #16931
Brent crude has dropped roughly 9-10% to the $93-$95 area following a Democratic sweep in the US midterms, which removed the conflict premium from energy markets. European gas prices are also falling on hopes of an Iran deal, despite ongoing Ukrainian strikes that have forced 15 of Russia's 38 major refineries to suspend operations. This divergence between physical supply disruption and macro price collapse highlights a shift from geopolitical risk-off to demand-destruction pricing.
Energy Price Collapse & Geopolitical De-escalation
Brent crude has dropped roughly 9-10% to the $93-$95 area following a Democratic sweep in the US midterms, which removed the conflict premium from energy markets. European gas prices are also falling on hopes of an Iran deal, despite ongoing Ukrainian strikes that have forced 15 of Russia's 38 major refineries to suspend operations. This divergence between physical supply disruption and macro price collapse highlights a shift from geopolitical risk-off to demand-destruction pricing.