Washington (TDI): Oil prices fell over 1% on Wednesday as a stronger US dollar and higher-than-expected US crude stockpiles weighed on the market, with investors closely watching the tight presidential race where Donald Trump was leading in early counts.
Brent crude futures dropped by 90 cents, or 1.2%, to $74.63 per barrel by 9:50 AM PST, while US West Texas Intermediate (WTI) crude declined by 82 cents, or 1.1%, to $71.17.
Analysts attributed the dip to an uptick in US yields and a firmer dollar amid initial signs favouring a Republican lead, which led to reduced crude demand.
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Trump, with an early lead of 211 Electoral College votes compared to Kamala Harris’s 145, saw US stock futures and the dollar surge in Asia, heightening anticipation for a possible Republican win, according to Reuters.
Analysts said that in the longer run, Trump’s pro-US energy policies and potential trade barriers could weigh on global oil demand.
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Meanwhile, demand concerns added to the oil price pressure after American Petroleum Institute data showed US crude inventories climbed more than anticipated.
