The price of oil rose by almost 3% today when President Donald Trump falsely claimed that he had won the tight US elections. However, this was not true information, because millions of votes still need to be counted and the final result is still not clear.
Trump’s victory is seen as a bullish signal for oil over sanctions on Iran and Trump’s support for OPEC’s Saudi cuts. The victory of his rival Joe Biden would be perceived as bearish due to his green politics and softer attitude towards Iran.
West Texas Intermediate (WTI) oil rose 1.03 cents (+ 2.66%) to $ 38.69 a barrel in the morning.
Brent crude rose 1.09 cents (+ 2.67%) to $ 40.80.
“Trump’s potential victory is bullish for oil, as OPEC + can continue cutting without fear that Iran’s oil supply will return to the market in the near future,” said Bjarne Schieldrop of SEB.
OPEC producers and Russia have considered postponing the planned increase in OPEC + oil production from January, as the second wave of coronavirus suppresses a return to fuel demand – this is another reason supporting price growth.
More and more lockdowns could also curb rising oil prices. Italy, Norway and Hungary have already tightened the straps. Britain, France and other countries followed.
Stock markets also changed direction and bonds traded at a higher price, as the counting of votes showed that the election is tighter than predicted by opinion polls.
Graph with Brent Oil growth:
Graph with WTI Oil growth:
Sources: Reuters.com, WebTrader