EXPLAINER: Will oil prices keep falling after Democrats' US midterm win?

Detailed summary

Global oil prices dropped significantly after the Democrats defeated the Republicans in the recent US midterm elections, and are poised to take control of both chambers of…

Global oil prices dropped significantly after the Democrats defeated the Republicans in the recent US midterm elections, and are poised to take control of both chambers of Congress in the next two years.

As of November 4, Brent crude, the global oil benchmark, fell to $94.62 per barrel, while West Texas Intermediate (WTI), another major benchmark, dropped to $88.12 per barrel.

Analysts attributed the decline to optimism that mounting political pressure on US President Donald Trump, a Republican, could lead to an easing of tensions in the Middle East.

The Democrats’ victory gives them greater power to block Trump’s policy initiatives, including efforts to restrict funding for the Middle East war that he launched last February, according to Houston-based consulting firm Lipow Oil Associates.

But does their victory mean Filipinos can expect sustained relief from high fuel prices?

The impact of the Democrats’ victory on global oil prices has already been felt in the Philippines, according to the Department of Energy (DOE).

The agency’s Oil Industry Management Bureau said the shift in the US political landscape fueled expectations of a resolution to the US-Iran conflict and eased concerns over possible disruptions to Middle East oil supplies.

On November 10, local gasoline prices were slashed by ₱16.80 per liter, marking the country’s first double-digit rollback since the conflict began.

Diesel prices also dropped by P4.10 per liter, while kerosene prices fell by P3.70 per liter.

Opening of the article, excerpted from GMA News. To read the rest, open the article on the publisher's site.