On Thursday, the value of oil continued to fall after the US presidential election, succumbing to the stress of the rising greenback.
The value of Brent decreased by 0.6% to $74.15, and WTI — by 0.88% to $70.97. Specialists observe that the strengthening of the greenback and weak demand are placing stress on the value of oil. On the identical time, potential value progress components are related to the potential of harder sanctions towards Iran and Venezuela, in addition to the dangers of geopolitical aggravation within the Center East.
Analysts consider that within the quick time period, oil costs might proceed to say no except severe geopolitical occasions happen. Different specialists consider that Trump’s coverage aimed toward supporting enterprise can contribute to the expansion of the financial system and gas demand. Nonetheless, intervention within the Fed’s easing coverage might have a unfavourable impression on the oil market.
Further stress on costs is exerted by a lower in oil imports to China and a rise in oil reserves in the USA. It’s anticipated that Trump will resume the coverage of sanctions towards Iranian oil, which can result in a discount in provides. This, in flip, might have an effect on costs sooner or later.
