6 November 2026 Punjab Khabarnama Bureau : Global oil prices moved higher on Friday, November 6, recovering towards the $100-per-barrel mark after suffering a steep decline earlier in the week. The rebound came as investors reassessed the impact of the US midterm election results, in which Democrats secured control of both chambers of Congress, creating fresh uncertainty for energy markets and the wider investment sector.
Brent crude, the international benchmark, rose 1.6% to around $99.86 per barrel during Friday’s trading. US West Texas Intermediate (WTI) crude also gained approximately 1.22%, reaching $91.62 per barrel. Despite the recovery, oil prices remained on course for a significant weekly decline of around 12%, reflecting the scale of selling pressure that followed the US election results. Reuters
Democrats’ Victory Changes Market Expectations
The Democratic Party’s sweeping victory in the US midterm elections has become a major factor influencing investor sentiment. The party secured control of both the House of Representatives and the Senate, creating a potential legislative check on President Donald Trump’s administration.
Following the results, traders began considering whether the new political balance could increase pressure on the administration to reduce tensions with Iran and pursue diplomatic efforts to end the ongoing conflict.
The war has disrupted important energy supply routes in the Middle East, particularly around the Strait of Hormuz, a strategic waterway through which a substantial share of global oil shipments passes. Any progress towards a diplomatic settlement could reduce concerns about supply disruptions and bring additional crude oil into the international market.
These expectations contributed to a sharp fall in oil prices earlier in the week. Brent crude dropped nearly 9% on Wednesday, while US crude also recorded a substantial decline. The sell-off pushed both benchmarks to their lowest levels since late August, according to market reports. Investing.com+1
Renewed Tensions Support Oil Prices
Although expectations of a possible diplomatic breakthrough initially put pressure on crude prices, developments in the Middle East have continued to create uncertainty.
Reports of attacks on oil tankers in the Gulf region and near the Strait of Hormuz have renewed concerns about the security of international shipping routes. Iran reportedly reported additional tanker attacks on Thursday, while maritime security information indicated that incidents in the region remained elevated.
The situation has made traders cautious about assuming that oil supplies will return to normal quickly. According to Reuters, shipping activity through the Strait of Hormuz has fallen below 60% of its normal capacity, highlighting the continuing impact of regional tensions on global energy transportation.
These supply concerns helped support crude prices during Friday’s trading, limiting the possibility of another sharp decline. Market participants are closely monitoring developments in the region because further disruptions could affect the availability and cost of oil worldwide. Reuters
Energy Stocks Face Fresh Pressure
The recovery in crude prices has not translated into gains across the entire energy sector. Energy-related shares have remained under pressure as investors assess the possible consequences of the changing political environment in the United States.
The State Street Energy Select Sector SPDR ETF, which tracks major US energy companies, declined 1.6% on Thursday to around $62.50. This indicated that energy equities were struggling even as crude oil prices recovered.
Investors are also considering whether a Democratic-controlled Congress could increase scrutiny of fossil-fuel projects, introduce additional regulatory pressure and strengthen support for renewable energy initiatives.
The election results have raised questions about the future direction of US energy policy. However, the practical impact of any legislative changes will depend on the proposals introduced, political negotiations and the administration’s response.
Data Centre Concerns Add to Market Uncertainty
Energy stocks have also been affected by concerns surrounding the rapid expansion of artificial intelligence infrastructure.
Data centres require significant amounts of electricity, and investors have increasingly viewed the sector as an important source of future demand for natural gas and power generation.
Democratic candidates in some states have raised concerns about the effects of large data-centre projects on electricity supplies, water resources and local communities. In Texas, Democrat Gina Hinojosa defeated Republican Governor Greg Abbott, and her position on pausing new data-centre projects until adequate safeguards are established has attracted investor attention.
Shares of companies connected to data-centre development came under pressure following the election. CoreWeave declined around 7%, while Nebius Group and Oracle each lost approximately 4% in overnight trading on Wednesday, according to market reports.
Investors fear that stricter approval requirements or delays in new projects could affect electricity demand forecasts and the expected growth of companies supplying power and infrastructure to the technology sector. Yahoo Finance+1
Renewable Energy Companies Also See Mixed Performance
Renewable energy shares have also experienced uneven movements as investors try to understand what the election outcome could mean for future government support.
Some market participants expect a Democratic-controlled Congress to defend existing clean-energy incentives and promote investment in renewable power. However, the immediate reaction has not been uniformly positive.
The iShares Global Clean Energy ETF declined 2.4% on Thursday. Enphase Energy fell 8.5%, while Array Technologies recorded a smaller decline. First Solar, meanwhile, gained 1.6%.
These movements show that the market response is being influenced by company-specific results, policy expectations and broader volatility rather than the election outcome alone. Yahoo Finance
Investors Watch Oil Supply and US Policy
Oil markets are now balancing two competing developments. Expectations of reduced geopolitical tensions could ease supply concerns and put downward pressure on crude prices. At the same time, continued instability around the Strait of Hormuz could restrict shipments and support higher prices.
The direction of US energy policy will also remain important for investors, particularly as lawmakers prepare to take up their new positions in January 2027.