Discover the Latest Trends in Oil Prices and How President-elect Donald Trump’s Policies Might Impact Supplies
Oil prices experienced a slight decline on Friday as the threat of a hurricane in the Gulf of Mexico disrupting U.S. oil and gas production diminished. Brent futures dropped by 0.6% to $75.16 per barrel, while U.S. WTI crude fell by 0.8% to $71.81. Despite a small decrease, both benchmarks had seen a rise of nearly 1% the day before.
This week, Brent is expected to see a 3.1% increase, while WTI is set to rise by 4.1%. Hurricane Rafael, responsible for shutting down 391,214 barrels per day of oil production, is predicted to move westward away from U.S. fields and weaken over the weekend, according to the U.S. National Hurricane Center.
Market sentiment was bolstered on Thursday by anticipated actions from the incoming Trump administration, such as stricter sanctions on Iran and Venezuela, which could impact global supply levels. Analysts at BMI, a unit of Fitch Solutions, believe that Trump will likely take a pragmatic approach to policy, potentially limiting the scope of radical shifts.
However, downward pressure on oil prices came from reports of a 9% decline in crude imports in China, the world’s largest oil importer, along with an increase in U.S. crude inventories. BMI suggests that the Trump administration’s influence on oil market fundamentals in the coming years may be somewhat restrained.