Oil Prices Dip Amid Close U.S. Presidential Race
Early results show narrow race, leading to cautious trading in commodities and broader markets
Oil prices declined on Wednesday as preliminary results from the U.S. presidential election indicated a close contest between Democrat Kamala Harris and Republican Donald Trump.
U.S. West Texas Intermediate (WTI) crude dropped by 27 cents, or 0.4%, to $71.72 per barrel, while Brent crude futures decreased by 0.35 cents, or 0.46%, to $75.18 per barrel as of 01:32 GMT.
Early projections from Edison Research showed Trump winning eight states, with Harris taking three states and Washington, D.C. The final result remained uncertain as critical battleground states were unlikely to be called for several hours or even days.
In Asian markets, U.S. stock futures and the dollar saw gains on Wednesday, with investors reacting cautiously to the election’s tight race and awaiting further clarity.
“Oil prices seem to be impacted by the U.S. dollar rally this morning,” noted Warren Patterson, head of commodities strategy at ING.
According to an ING report, oil prices may be sensitive to broader market movements as more election details emerge. A Trump victory could bring short-term gains for oil prices, driven by potential for tougher sanctions on Iran. On the other hand, a win for Harris might likely maintain the current conditions, the report added.
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