The increase in US stockpiles lowered oil prices
reported Mehr News Agency quoted by Reuters from Tokyo, following the strengthening of the dollar based on predictions about the possibility of Donald Trump winning the 2024 US presidential election and the increase in the level of US crude oil reserves beyond expectations. Oil price in trading on Wednesday (16 November) decreased by more than one percent.
The price of the North Sea Brent crude oil index fell by 90 cents or 1.2% to 74 at 4:50 am GMT on Wednesday. Dollar and 63 cents reached per barrel.
Meanwhile, US crude WI was down 82 cents, or 1.1%, to $71 and 17 cents per barrel.
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Tony Sycamore, analyst at IG Markets (IG Markets) in this Bareh said: The initial signs of the US Senate and presidential elections are favorable for the Republican camp, and while we are still in the early hours, the US dollar has strengthened.
He added: This situation, in turn, puts pressure on the price of crude oil, which has performed well in recent trading sessions.
Trump has been ahead in the US presidential election until this moment, however, the final result has not been announced yet.
US stock futures and the dollar rose in Asia on Wednesday as investors braced for a possible Trump victory in the US presidential election.
The increase in the value of the dollar causes the price of oil to rise for the holders of other currencies, and as a result, the demand decreases.
Sony Kumari, Commodity Strategist at INZ Research About He said: If Trump wins the presidential election, the oil market will increase in the short term due to the prospect of tightening sanctions against Iran’s oil industry.
He continued: “However, in the long run, it may be a reduction, as Trump’s policies are supportive of the US oil and gas industry, while trade support may be lead to weaker demand.
After the American Petroleum Institute data showed that U.S. crude oil stockpiles have increased beyond forecasts, this additional factor affected the weak demand signals on oil prices.
Market sources, citing figures from the American Petroleum Institute, announced that US crude oil stocks increased by 3 million and 130 thousand barrels in the week ending November 1 (November 11), which is higher than An increase of one million and 100 thousand barrels is estimated in a Reuters poll.
U.S. gasoline stockpiles fell by 928,000 barrels, largely in line with polls, and distillate stockpiles fell by 852,000 barrels, sources said.
