Crude fell nearly $3 amid demand concerns over the U.S. midterm elections

News, Nov.
8: International crude oil futures fell nearly $3 a barrel on Tuesday as concerns about fuel demand intensified and the outcome of the U.
S.
midterm elections uneasy
.

By the close, the most actively traded West Texas Intermediate (WTI) December contract on the New York Mercantile Exchange (NYMEX) closed at $88.
91 a barrel, down $2.
88 or 3.
14%
from the previous session.

Brent crude futures, the world's benchmark for January, closed at $95.
36 a barrel, down $2.
56 or 2.
6 percent
.

Analysts said traders were waiting for the results of
the U.
S.
midterm elections.
Tuesday's midterm elections in the United States will determine whether there will be a shift
in power in Congress.
Polls suggest Republicans are on track to win control of the House of Representatives and possibly control of the Senate
.
Analysts say this potential outcome would lead to a split
in the U.
S.
government.
A Republican majority in Congress will weaken Biden's ability to
pursue an expansionary fiscal policy program.

In China, as the number of new cases surges, hopes of easing restrictions are even more elusive
.
China is the world's number one crude importer and there are concerns that China's fuel demand will be adversely affected
.

Meanwhile, U.
S.
gasoline and diesel supplies remain at disturbingly low levels ahead of the winter heating season, limiting the downside
for crude oil prices.
U.
S.
distillate fuel inventories in October were at their lowest level
since 1951, according to the U.
S.
Energy Information Administration.

The ICE exchange raised the initial margin rate for Brent crude futures near-term contracts by 4.
92%, effective Tuesday's close, implying higher
holding costs.

The U.
S.
Energy Information Administration on Tuesday cut its outlook for U.
S.
energy demand for 2023 and forecast a 21 percent year-over-year increase in U.
S.
crude oil production next year that was 21 percent
lower than previously expected.

The American Petroleum Institute (API) will release last week's inventory data
for U.
S.
crude and refined products after hours on Tuesday.
Analysts expect U.
S.
crude inventories to rise by 1.
1 million barrels
last week.

WTI crude is up 2.
75% so far this month and 18.
22% year-to-date, and closed Tuesday up 5.
66
% year-on-year.
Brent crude is up 0.
56% so far this month and 22.
60% year-to-date, and Tuesday's closing price is up 12.
48%
year-on-year.

In contrast, WTI crude rose 55.
5% in 2021, the biggest annual gain since 2009
.
Brent crude rose 50.
5 percent, its biggest gain since 2016, largely due to strong demand and limited
supply growth.