Oil prices hit two-month low after U.S. Democratic win
The Hindu - Business/Economy · Published 5 November 2026 · Last updated
Crude oil prices tumbled to a two-month low below $90 per barrel following the U.S. Democratic midterm election victory, triggering a significant rebound in Indian equities driven by foreign institutional buying.
Key points
- Brent crude futures dropped 1% to $93.5 per barrel on November 5, 2026, following an 8.7% slide in the previous session.
- West Texas Intermediate crude slipped below $90 per barrel on Wednesday, November 4, 2026, marking its lowest level in over two months.
- U.S. and European stocks rallied after Democrats seized control of both chambers of Congress in the U.S. midterm elections.
- Foreign investors bought Indian shares worth ₹72.84 billion ($769.65 million) on Wednesday, November 4, 2026, marking their fourth straight session of buying.
- Indian benchmark Nifty 50 and BSE Sensex rose 5.6% in the five sessions leading up to November 5, 2026.
- GIFT Nifty futures stood at 24,295.5 at 8:01 a.m. IST on November 5, 2026.
- Qatar stepped up diplomatic mediation efforts following the U.S. elections to prevent further regional escalation involving Iran.
- U.S. crude inventories dropped by 865,000 barrels to 409.8 million barrels in the week ended October 30, according to the Energy Information Administration.
Background
- Global crude oil prices experienced heightened volatility earlier in the year, driven by the U.S.-Israeli war on Iran and disruptions in regional energy flows.
- WTI crude started 2026 near $57 per barrel and peaked near $113 on April 7, 2026, driven by war-related supply constraints.
- The administration of President Donald Trump pursued global tariff policies and military engagement in the Middle East, contributing to Indian market underperformance earlier in the year.
- Foreign institutional investors executed a strong sell-off of Indian shares earlier in 2026 before reversing trends in early November.
- Democrats seized control of the House of Representatives and the Senate in the November 2026 midterm elections, altering the political balance in Washington.
UPSC relevance, Prelims facts and Mains angle for this issue are in the full SWAदेSH note.
Original report: The Hindu - Business/Economy