On Thursday, 7 November, oil rose significantly after market fluctuations caused by the US presidential election, Reuters reports .
The price of Brent crude oil rose by 29 cents (0.39%) to $75.21 per barrel, while US West Texas Intermediate (WTI) added 18 cents (0.25%) to reach $71.87 per barrel.
Analysts attribute the growth to a possible reduction in oil supplies from Iran and Venezuela following the victory of Donald Trump, who is known for his tough approach to sanctions. In addition, the situation was affected by a forecast storm that threatens to shut down production in North America. Despite the strengthening of the dollar and an increase in US oil reserves, uncertainty factors offset market expectations, said Tony Sycamore, an analyst at IG.
The election initially caused prices to drop sharply, by more than $2, as investors reacted to the dollar rising to its highest level since September 2022. According to Priyanka Sachdeva, senior market analyst at Phillip Nova, Trump’s pro-business policies will potentially boost economic growth and fuel demand, but any impact on Fed policy could pose additional risks to the oil market.
China’s crude oil imports fell by 9% in October, the sixth consecutive monthly drop year-on-year, reflecting a decline in demand amid the shutdown of major refineries.
Trump is expected to return to the policy of “maximum pressure” on Iran, which could reduce Iranian oil exports by 1 million barrels per day, according to Energy Aspect.
Amid the threat of Hurricane Rafael, the US Bureau of Safety and Environmental Protection has temporarily suspended oil production in several areas.
Oil reserves in the US increased by 2.1 million barrels over the past week, reaching 427.7 million, which is significantly higher than the expected increase of 1.1 million barrels, the US Energy Information Administration reported.
