Oil prices edge up as investors eye US election fallout
Published: 02:11 PM,Nov 07,2024 | EDITED : 06:11 PM,Nov 07,2024
On Thursday, oil prices rose, reversing a post-election sell-off amid supply risks tied to a Trump presidency
SINGAPORE: Oil prices ticked up on Thursday following a sell-off triggered by the US presidential election, as risks to oil supply from a Trump presidency and a hurricane building in the Gulf Coast outweighed a stronger dollar and lower crude imports in top importer China.
Brent crude oil futures were up 29 cents, or 0.39 per cent, at $75.21 per barrel by 0700 GMT. US West Texas Intermediate (WTI) crude gained 18 cents or 0.25 per cent to $71.87.
Concerns around a Trump presidency squeezing oil supply from Iran and Venezuela as well as an approaching storm 'more than offset the post-election impact of a stronger US dollar and higher-than-expected US inventories,' Tony Sycamore, a market analyst with IG, wrote in a note.
Trump's election had initially triggered a sell-off that pushed oil prices down by more than $2 as the US dollar rose to its highest level since September 2022. But the front-month contracts pared losses to settle down 61 cents for Brent and 30 cents for WTI by the end of the Wednesday session.
Donald Trump is expected to reimpose his 'maximum pressure policy' of sanctions on Iranian oil. That could cut supply by as much as 1 million barrels per day, according to an Energy Aspect estimate.
Trump in his first term had also put in place harsher sanctions on Venezuelan oil, measures that were briefly rolled back by the Biden administration but later reinstated.
In North America, Hurricane Rafael intensified into a category 3 hurricane on Wednesday, and about 17 per cent of crude oil production or 304,418 barrels per day in the US Gulf of Mexico had been shut in response, the US Bureau of Safety and Environmental Enforcement said.
US crude inventories rose by 2.1 million barrels to 427.7 million barrels in the week ending on November 1, the US Energy Information Administration said on Wednesday, compared with expectations for a 1.1 million-barrel rise. — Reuters
Brent crude oil futures were up 29 cents, or 0.39 per cent, at $75.21 per barrel by 0700 GMT. US West Texas Intermediate (WTI) crude gained 18 cents or 0.25 per cent to $71.87.
Concerns around a Trump presidency squeezing oil supply from Iran and Venezuela as well as an approaching storm 'more than offset the post-election impact of a stronger US dollar and higher-than-expected US inventories,' Tony Sycamore, a market analyst with IG, wrote in a note.
Trump's election had initially triggered a sell-off that pushed oil prices down by more than $2 as the US dollar rose to its highest level since September 2022. But the front-month contracts pared losses to settle down 61 cents for Brent and 30 cents for WTI by the end of the Wednesday session.
Donald Trump is expected to reimpose his 'maximum pressure policy' of sanctions on Iranian oil. That could cut supply by as much as 1 million barrels per day, according to an Energy Aspect estimate.
Trump in his first term had also put in place harsher sanctions on Venezuelan oil, measures that were briefly rolled back by the Biden administration but later reinstated.
In North America, Hurricane Rafael intensified into a category 3 hurricane on Wednesday, and about 17 per cent of crude oil production or 304,418 barrels per day in the US Gulf of Mexico had been shut in response, the US Bureau of Safety and Environmental Enforcement said.
US crude inventories rose by 2.1 million barrels to 427.7 million barrels in the week ending on November 1, the US Energy Information Administration said on Wednesday, compared with expectations for a 1.1 million-barrel rise. — Reuters