Energy - - Nov 14,2016
Oil prices dipped majorly after Donald Trump stunned the world by winning the US Presidential elections
A major turmoil in the prices was experienced when Trump initially took lead. US West Texas Intermediate (WTI) futures went down by 4% at $43.07 per barrel, its lowest since September. Whereas, Brent futures dropped by 2%, at $45.11 per barrel.
This decline in oil prices was simultaneous with falls in stock markets of Asia and Europe. Investors were reluctant to invest in oil, waiting for the election results and Trump’s lead created a sense of skepticism in the market.
Though they settled down eventually. Oil prices somewhat recovered when Trump was finally declared victorious. WTI stood down by 1.2% at $44.42 a barrel, while Brent was down by 0.74% at $45.7 a barrel.
A report from the American Petroleum Institute (API) said that the figures of crude inventories have gone up by 4.4 million barrels and are weighing on the markets. The actual figures are yet to be released by the US Energy Information Administration.
Gold, considered to be the safest haven for investors, was on a major upsurge all across the world. Dollar declined sharply even after the results were declared.
US oil prices had increased yesterday riding on an optimism of Hilary Clinton’s win. This increase came after a continuous dip of six days in the prices. However, Trump’s surprising victory shook the world and caused a commotion in the market.
Experts are still uncertain about what Donald Trump’s foreign policies would be, especially in relation to oil hotspots like the Middle East. However, US producers believe that Trump will give them an access to foreign operations and deals. Trump’s proposals of anti-Iran policies and an upcoming drop in Iran’s crude oil exports could lead to a further rise in the prices.