Investment Manager Reveals: Oil Prices Fall Amidst Tight U.S. Election Race Between Harris and Trump
By Katya Golubkova
Oil prices took a hit on Wednesday as early poll results in the U.S. election showed Democrat Kamala Harris and Republican Donald Trump locked in a tight race for the presidency.
U.S. West Texas Intermediate (WTI) crude lost 27 cents, or 0.4%, to trade at $71.72 per barrel, and futures lost 0.35 cents, or 0.46%, to trade at $75.18 per barrel at 0132 GMT.
Trump secured eight states in Tuesday’s U.S. presidential election while Harris captured three states and Washington, D.C., Edison Research projected. However, the outcome of the race remained uncertain, with critical battleground states unlikely to be called for hours or even days.
U.S. stock futures and the dollar surged in Asia on Wednesday as early results from the U.S. presidential election indicated a close race, leaving investors on edge.
Oil prices seemed to be dropping due to the strengthening U.S. dollar this morning, according to Warren Patterson, head of commodities strategy at ING.
“Oil will likely be influenced by overall market movements as we gain more clarity on the U.S. election results,” ING stated in a separate note, highlighting that a Trump victory could lead to short-term gains with the possibility of stricter sanctions against Iran. On the other hand, if Harris emerges victorious, the status quo is likely to be maintained, as per ING’s note.
Analysis:
The U.S. election results have had an immediate impact on oil prices, with the uncertainty surrounding the race causing fluctuations in the market. Depending on whether Trump or Harris emerges as the victor, oil prices could see short-term gains or remain stable. Investors should keep a close eye on the election developments to make informed decisions about their investments in the oil market.