London, Nov 05 (V7N)- Global oil prices continued to decline on Thursday, with Brent crude falling below $100 a barrel after the Democrats’ sweeping victory in the US midterm elections raised expectations of a possible end to the US-Israeli war with Iran.
According to Reuters, Brent crude futures fell to around $93.82 a barrel on Thursday, extending a sharp decline of more than 8 per cent recorded in the previous session. Prices have dropped by roughly 20 per cent from their levels at the end of last week.
If the decline continues through Friday, the market could record its steepest weekly fall since April 2020.
Analysts said investors were betting that Democratic control of Congress could increase pressure on President Donald Trump to seek a negotiated settlement with Iran. An end to the conflict could help restore disrupted oil supplies from the Middle East and ease pressure on global energy markets.
The fall in oil prices also supported gains in US and European stock markets. The S&P 500 rose 1.6 per cent on Wednesday, while European equities advanced to their highest levels in about two months.
Asian markets, however, recorded mixed performances. Most major markets gained, but technology shares came under pressure amid concerns about the outlook for artificial intelligence, data centres and semiconductor companies.
South Korea’s Kospi index fell around 4 per cent, while Taiwan’s stock market declined 1.8 per cent. Japan’s Nikkei index also slipped 0.5 per cent.
Market analysts said concerns about technology valuations and the scale of investment in AI infrastructure could temporarily slow expansion in the sector. However, they do not expect demand for artificial intelligence, data centres and semiconductor technology to decline significantly over the longer term.
END/SMA/AJ
