Oil Prices Drop 9% After Republicans Lose Congress in Midterm Elections

Oil prices fell 9% on Wednesday in volatile trading as investors awaited Washington's next move in the US-Israeli war with Iran after President Donald Trump's Republican Party lost control of Congress in midterm elections.

Brent futures dropped $9.27, or 8.9%, to $94.29 a barrel, touching the lowest level since September 4, at 11:58 a.m. ET (1658 GMT). US West Texas Intermediate crude futures were down $7.44, or 7.8%, to $88.54.

Brent settled in the previous session at its lowest level in nearly four weeks as traders weighed talks to end wars in Ukraine and Iran.

"Larger crude oil exports out of the Middle East, along with President Trump stating he has no immediate plans to strike Iran, is keeping the pressure on crude oil prices for now. The Democratic control of Congress could also tighten US military spending in the Middle East and further heighten the possibility of a peace deal sooner than later," said Dennis Kissler, senior vice president of trading at US financial services firm BOK Financial.

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