Oil
Oil prices slide below $95 on US midterms and Middle East uncertainty
Global crude prices have dropped following the US midterm elections and ongoing geopolitical tensions involving Iran.
Key points
- Brent crude fell 8.5 percent to $94.79 per barrel.
- US WTI declined 8.33 percent to $88.09 per barrel.
- Democrats secured control of both congressional chambers in the midterm elections.
What happened
Global crude oil benchmarks experienced a significant decline as international markets reacted to political developments in the United States and ongoing conflicts in the Middle East. According to Nigerian Eye reporting, Brent crude dropped by 8.5 percent to settle at $94.79 per barrel. Meanwhile, US West Texas Intermediate fell by 8.33 percent to $88.09 per barrel.
The downward movement followed the US midterm elections, where the Democratic Party won control of both chambers of Congress. Reuters reported that market participants are closely monitoring Washington for potential shifts in policy regarding the ongoing US-Israeli military campaign against Iran following the Republican defeat.
US President Donald Trump acknowledged that the conflict with Iran may have influenced the election outcome, while declining to rule out a resumption of combat operations. In a written statement cited by Nigerian Eye, Iran's supreme leader, Ayatollah Khamenei, stated that American hostility would continue regardless of the ruling political party, noting that Iran views the end of US hegemony as near. A senior Iranian official also indicated that Tehran and Washington remain distant from reaching a diplomatic resolution.
Why it matters
For energy exporters such as Nigeria, lower international crude prices present immediate fiscal challenges. According to US EIA data, Brent spot prices stood at $107.03 per barrel on November 3, 2026, meaning the subsequent drop to below $95 represents a notable contraction in potential export earnings.
Nigerian fiscal authorities rely heavily on petroleum revenues to support government budgets and foreign exchange reserves. A sustained reduction in crude prices could constrain public spending and increase pressure on the naira reference rate, which stood at 1348.02 per US dollar. Conversely, softer global petroleum prices could eventually translate to lower import costs for refined products, potentially easing inflationary pressures on domestic diesel and petrol prices for consumers and industries across the country.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
9.5% of world merchandise exports were fuels in 2025Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
