Brent: Election-driven risk premium unwinds – ING

ING analysts Warren Patterson and Ewa Manthey say ICE Brent has sold off sharply after the Democrats’ US midterm sweep, as markets price a potentially quicker end to the Iran war and a fading risk premium. They note softer fundamentals, weakening timespreads and still-tight US product inventories, but argue the speed of the recent decline looks overdone.