West Texas Intermediate (WTI) crude oil, the U.S. benchmark, is trading at approximately $71.45 on Thursday, edging lower. The decline comes as the U.S. Dollar (USD) strengthens following Republican candidate Donald Trump’s victory in the U.S. presidential election.
Trump’s win has supported the USD, which in turn has put downward pressure on WTI, priced in dollars. The U.S. Dollar Index (DXY), which measures the value of the dollar against a basket of foreign currencies, rose to its highest level since July, reaching nearly 105.44 before retreating to 105.20.
However, Trump’s reelection could bring a tougher stance on countries like Iran and Venezuela, potentially leading to renewed sanctions. This could tighten global oil supply and ultimately support higher WTI prices. Goldman Sachs analysts noted that while the potential impact of a second Trump term on oil prices is uncertain, there are risks to supply from Iran, which could drive prices up in the short term.
In addition, the U.S. Energy Information Administration‘s (EIA) weekly report showed a larger-than-expected rise in U.S. crude oil stocks. For the week ending November 1, crude inventories increased by 2.149 million barrels, compared to a drop of 0.515 million barrels the previous week. Market expectations had been for an increase of 1.8 million barrels.
Related Topics:
- Oil Price Index Live Chart Today ((November 6)
- Today’s WTI Crude Oil Price ((November 6)
- What Is the WTI Crude Oil Price Today ((November 5)