The impact of the results of midterm elections in America is visible on the financial markets around the world. President Trump’s Republican Party has suffered a major setback in the elections. The Democratic Party has gained the lead in both houses of the US Parliament. After this political change, there was a sharp decline in the prices of crude oil, while a strong rise was recorded in the prices of gold and silver. There was a buying environment in the American stock market also.
Crude oil prices fell by 8%
After the results of the US midterm elections, there was a huge fall in the prices of crude oil. According to the available market data, the price of US crude oil WTI fell by about 7.71% to $ 88.68 per barrel. At the same time, the price of Brent crude fell by 8.69% to $ 94.60 per barrel.
According to commodity expert Ajay Kedia, on Wednesday WTI crude fell 8.41% to $ 88.61 per barrel, while MCX crude fell 8.1% to Rs 8,367.
What is the reason for the fall in oil prices?
The changing political conditions of America along with the changing expectations of the market regarding tensions in West Asia are also considered important behind the fall in oil prices.
Investors hope that changes in US policies after the elections and possible talks with Iran may reduce concerns about oil supply. However, geopolitical tensions in West Asia have not completely ended yet.
What is the price of crude oil for India?
India fulfills a major part of its needs through imported crude oil. At present, crude oil is costing India $103 per barrel. Due to fall in the price of crude in the international market, there is a possibility of reduction in the cost of oil import for India.
Strong rise in gold and silver
In contrast to the fall in crude oil prices, the prices of gold and silver rose. In the international market, the price of gold increased by 3.29% to $ 4,061.13 per ounce.
In the domestic market i.e. Multi Commodity Exchange (MCX), both precious metals also registered a rise. Gold crossed Rs 1,43,097 with a rise of 2.6 per cent, while silver reached Rs 1,87,085 with a rise of 4 per cent.
Source: ndtv.in
