Oil Prices Slide on Dollar Strength as U.S. Election Results Remain Unclear

Image Credit: Reuters

 

Oil prices declined on Wednesday as initial U.S. election results showed a close race between Democrat Kamala Harris and Republican Donald Trump for the presidency.

U.S. West Texas Intermediate (WTI) crude dropped 27 cents, or 0.4%, to $71.72 per barrel, while Brent crude futures fell 0.35 cents, or 0.46%, to $75.18 per barrel at 0132 GMT.

Trump had won eight states in Tuesday's election, while Harris had won three states and Washington, D.C., according to Edison Research. However, the final outcome remained uncertain, as key battleground states were unlikely to be called for hours or days.

U.S. stock futures and the dollar rose in Asia on Wednesday, reflecting uncertainty from the election results, with investors responding to the unclear situation.

Warren Patterson, head of commodities strategy at ING, suggested that oil prices were likely reacting to the rally in the U.S. dollar. ING also noted that oil could remain susceptible to broader market movements as the election outcome becomes clearer. The firm indicated that if Trump wins, there could be short-term gains for oil, particularly if stricter sanctions on Iran are imposed, while a Harris victory would likely maintain the current situation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Paraphrasing text from "Reuters all rights reserved by the original author.