logo |

News

    Home   >     Original    >     Main body

    US Election: Impact on the Crude Oil Market

    Abstract:The crude oil markets are responsive to geopolitical events and the global economic outlook. Prices have been range-bound in recent months after staging a recovery from record negative pricing for US crude in April, but there are suggestions that the market has overestimated the recovery in demand in the aftermath of Covid-19 lockdowns.

      The crude oil markets are responsive to geopolitical events and the global economic outlook. Prices have been range-bound in recent months after staging a recovery from record negative pricing for US crude in April, but there are suggestions that the market has overestimated the recovery in demand in the aftermath of Covid-19 lockdowns.

      Biden has called for a transition away from oil towards clean energy, but as this is a long-term goal, it would be unlikely to have an immediate impact on the oil markets if he were to win the election. And if Trump wins, there is also likely to be no real change in the direction of the commoditys prices.

    refinery-3613526_960_720.jpg

      The oil markets are likely to be more focused on how the global economic recovery unfolds, with the US election impact on markets remaining limited.

      The market for the US benchmark West Texas Intermediate (WTI) crude stabilised over the summer, with strong support at $36 per barrel and resistance at $44 per barrel. The market has been trading within that range between $37 and $41.50 per barrel in October and the trend is set to continue in the short term.

    [infographics]

      Noting that crude oil prices have been volatile within a relatively narrow trading range for months, Hans van Cleef, senior energy economist at ABN Amro, said that “at the moment, there is little that seems to change this playing field for the oil market”.

      However, he added that with oil demand remaining under pressure and supply cut agreements set to expire in the coming months, “OPEC and its partners have some tough discussions ahead of them. The direction of oil prices largely depends on the outcome of these discussions. The high volatility will persist for a while, while the oil price will at most be able to rise slightly.”

    Latest News

    United Arab Emirates Dirham

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    United Arab Emirates Dirham
    Available
    -- United States Dollar
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click "Complaints "and "Correction" to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.