Brent crude oil prices reached $93.65 per barrel, indicating a decrease of 97 cents (1.03%) compared to the previous day. West Texas Intermediate crude oil in the United States also traded down by $1.14 (1.29%) to $86.98 per barrel. In Wednesday's trading session, both oil benchmarks fell more than 8%, reaching their lowest level since August 31.
The Impact of Political Situation on Oil Prices
This decline in oil prices is clearly influenced by the political situation in the United States, particularly the weakening of former President Donald Trump. With the Republican electoral defeat and the formation of a Congress controlled by the Democrats, Trump's military options appear to be more limited, which could lead to reduced tensions in the Middle East. Sources close to government circles in Gulf countries have stated that the likelihood of a full-scale attack on Iran now seems lower.
Read more: Decline of the US Dollar Ahead of Midterm Elections and Concerns Over Trump's Military Attacks
Upward Trend in Gold Prices
While the oil market faces severe fluctuations, global gold prices continue their upward trend. On Thursday, the price of gold per ounce increased by $66 to reach $4,128. This rise in gold prices indicates investors' willingness to hold safe assets amid economic and political uncertainty.
According to experts, recent changes in the oil and gold markets may signal larger changes on a global scale. The decline in oil prices may lead to reduced production and consumption costs in importing countries, while the increase in gold prices indicates a rising demand for safe assets. These two factors could have significant impacts on the global economy, especially in Middle Eastern countries.
Given recent developments, experts believe that the governments of Gulf countries should reassess their policies to cope with oil market fluctuations and their effects on their economies. In this situation, increased cooperation among oil-producing countries and joint decision-making could help stabilize the market.
Read more: Large Dollar Loans to Major Companies; Who is in Line to Receive? · US Supreme Court Rejects Trump's Request to Nullify 20,000 Votes in California
