It has nothing to do with the election. It is about lower demand forecasts, particularly China.
https://oilprice.com/Energy/Oil-Prices/Oil-Drops-45-Percent-Amid-Record-Bearish-Sentiment-from-Money-Managers.html
Oil Prices Drop 4.5% On Record-Bearish Sentiment from Money Managers
WTI crude futures fell 4.5% on Tuesday morning as hedge funds and money managers continued to sour on crude oil
Hedge funds and other money managers have turned the most bearish on crude ever since the CFTC started to publish information on market positioning, with Brent and WTI net longs totaling a mere 139,242 lots in the week ended September 3.
- As the oil market gathered in Singapore this week for the annual Appec conference, Trafigura head of oil trading Ben Luckock said oil would dip into the 60s soon, depressed by weakening demand in China.
- US investment Citi lowered its 2025 price forecast to a mere 60 per barrel, prompting a general downward revision of outlooks as Morgan Stanley and the Bank of America both slashed its expectations to $75 per barrel.
- Crude oil futures could potentially flip into contango over the upcoming period as the ICE Brent 36-month spread between the November 2024 and November 2027 contracts shrank to a mere $2 per barrel, down from $9 per barrel a month ago.
OPEC Lowers Its Demand Growth Outlook