Trump's Victory Affected Oil Prize

At the London market, the price of a barrel after noon was at 66 cents lower than in closing yesterday's trade and reached $74.26. In the U.S. market, one barrel was traded at 80 cents lower, at $70.87.

Donald Trump's victory in presidential elections sparked a wave of optimism in financial markets Wednesday, prompting speculation that tax policies could spur economic growth.

Trump secured another mandate at the White House after winning the Democrat candidate, Kamala Harris.

Investors' optimism was shown in strengthening the dollar, which closed on Wednesday in the largest plus of two years. The formation of the green currency affected oil prices after hindering demand from buyers with other coins.

On Thursday, the dollar stabilised in anticipation of the US central bank meeting and the decision on interest rates. The FED began to lower borrowing costs, concluding that inflation had been overcome and that the focus of monetary policy should be shifted to the labour market, given poor job demand signs.

“Trump (in its first mandate) was friendly to business, which probably supports growth in the overall economy and results in greater demand for fuel. However, possible intervention in facilitating monetary policy by the FED could create new oil challenges on the market”, explains Priyanka Sachdeva from Philip New Ones.

Investors were also concerned about the decline of Chinese imports and the rise of US inventory, writes resources.

Chinese oil imports fell by nine percent in October compared to the same month last year, data from the customs administration showed. US oil reserves rose last week by 2.1 million barrels, according to data from the Energy Ministry.

A strong dollar and a poor demand may be a burden on oil prices in the coming period, notes Ole Hansen from the Saxe Bank, and possible reintensification of sanctions from Trump to Iran and Venezuela, and escalation of tensions in the Middle East may be their push”.

Possible weights and incentives cancel each other in the story, so oil prices remain at a tight interval, Hansen explains.

The Organisation of Oil Exporting Countries (OPEC) reported separately that on Wednesday, a barrel of its members' oil basket fell 83 cents to 73.94. /Telegrapher