Oil Prices Rise After U.S. Vote

7 Nov 2024 , 10:10 AM

Following a sell-off brought on by the U.S. presidential election, oil prices increased little on Thursday as the risks of a Trump presidency and a hurricane developing along the Gulf Coast overcame greater stockpiles and a stronger U.S. dollar as factors affecting the oil supply.

Brent crude oil futures were up 26 cents, or 0.35%, to $75.18 a barrel. At $71.85, U.S. West Texas Intermediate (WTI) crude increased 16 cents, or 0.22%.

Initial sell-offs following Trump’s election caused oil prices to drop by over $2 as the US currency hit its highest level since September 2022. However, the front-month contracts reduced losses, with Brent and WTI down 61 and 30 cents, respectively.

It is anticipated that Donald Trump will reinstate his “maximum pressure policy” of sanctions against Iranian oil. According to an Energy Aspect assessment, that may reduce supplies by up to 1 million barrels per day, but analysts warn that it would be challenging to halt the flow of Iranian oil to China.

In his first term, Trump also imposed more severe restrictions on Venezuelan oil, which the Biden administration temporarily reversed but then restored.

The U.S. Bureau of Safety and Environmental Enforcement reported that approximately 17% of crude oil production, or 304,418 barrels per day, in the U.S. Gulf of Mexico has been shut down in reaction to Hurricane Rafael, which strengthened into a category 3 hurricane in North America on Wednesday.

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