The global oil market experienced a downturn as Donald Trump secured victory in the United States presidential election.
This unexpected outcome led to a surge in the dollars value against other currencies.The strengthening dollar put pressure on oil prices, causing them to decline.
Brent crude, the international benchmark, fell by 0.80% to $74.92 per barrel.This price was for January 2025 contracts on the Intercontinental Exchange in London.
Meanwhile, West Texas Intermediate (WTI) dropped 0.41% to $71.69 per barrel for December contracts on the New York Mercantile Exchange.The dollars rise made oil more expensive for buyers using other currencies.
This could potentially reduce demand, especially in emerging markets.Trumps return to the White House may also impact Chinas economy, further weakening oil demand from the worlds largest importer.Trumps Win Boosts Dollar, Sinks Oil Prices.
(Photo Internet reproduction)Trumps presidency could mean stricter sanctions against Iran, an OPEC member.
This might support global crude oil prices.
In 2018, Trump unilaterally withdrew the United States from a nuclear deal and imposed sanctions on Iran during his first term.United States Oil Market DynamicsUnited States oil inventories increased by 2.149 million barrels, reaching 427.658 million barrels.
This rise was unexpected, as experts had predicted stability.In addition, the data came from the Department of Energy for the week ending November 1.
Investors also kept an eye on Tropical Storm Rafael in the Gulf of Mexico.Meteorologists expect it to strengthen into a hurricane this week.
Analysts predict the storm could reduce oil production by about 4 million barrels.The decision by OPEC+ to delay increasing commodity production remains a factor in the market.
This move continues to influence oil prices and supply dynamics globally.These events highlight the complex interplay of political, economic, and environmental factors in the oil market.
The industry remains sensitive to global events, from election outcomes to weather patterns.