“Price swings. Oil rises again – Reuters November 7, 11:31 Share: Oil prices rise again (Photo: REUTERS/Nick Oxford/File Photo) Oil prices rose on Thursday, November 7. Risks to oil supplies related to a Trump presidency and a hurricane on the Gulf Coast outweighed a stronger dollar and lower oil imports by China, the largest importer. After the sell-off caused by the US presidential election”, — write on: ua.news
Oil prices are rising again (Photo: REUTERS/Nick Oxford/File Photo)
Oil prices increased on Thursday, November 7. Risks to oil supplies related to a Trump presidency and a hurricane on the Gulf Coast outweighed a stronger dollar and lower oil imports by China, the largest importer.
After the sell-off caused by the US presidential election, oil prices started to rise. Reuters writes about it.
Brent crude futures rose 29 cents, or 0.39%, to $75.21 a barrel. US West Texas Intermediate crude oil (WTI) rose 18 cents, or 0.25%, to $71.87.
“Concerns about a Trump presidency that would cut oil supplies from Iran and Venezuela and the looming storm “more than offset the post-election impact of a stronger U.S. dollar and … higher-than-expected U.S. inventories,” said Tony Sycamore, market IG analyst.
Trump’s election initially sparked a selloff that sent oil prices crashing by more than $2 as the U.S. dollar rose to its highest level since September 2022. “But contracts for the first month by the end of the session on Wednesday fell by 61 cents for Brent oil and by 30 cents for WTI oil,” the newspaper writes.
However, growth in oil markets may be limited in the short to medium term, as OPEC is expected to increase supplies in January and historical trends do not indicate that sanctions will prevent India and China from continuing to buy oil from Russia or Iran.
Donald Trump is expected to restore his “policy of maximum pressure” of sanctions on Iranian oil. Energy Aspect estimates this could reduce oil supply by 1 million barrels per day.
During his first term as president, Trump also imposed tougher sanctions on Venezuelan oil. These measures were briefly rescinded by the Biden administration, but later reinstated.
As previously reported, oil prices fell 2% on Wednesday, November 6, as the dollar rose on predictions that Republican Donald Trump would win the US presidential election, while US crude inventories rose more than expected.