TOKYO- Oil prices fell more than 1 percent on Wednesday as the dollar firmed on market bets the US presidential election could swing in Republican Donald Trump’s favor though the race was still too close to call, and as US crude stocks rose more than forecast.
Brent crude oil futures was last down 90 cents, or 1.2 percent, to trade at $74.63 per barrel, while US West Texas Intermediate (WTI) crude lost 82 cents, or 1.1 percent, to trade at $71.17 per barrel.
“The initial signs have been favorable for the Republicans and while it’s still early days, US yields and the US dollar are both trading higher,” said Tony Sycamore, an analyst at IG Markets.
“This in turn is weighing on the crude oil price which has had a good run in recent sessions.”
Trump was last leading in the US presidential election on Tuesday, having won 211 Electoral College votes compared with 145 for Harris, with a third of the vote counted. The outcome of the race however remains uncertain with critical battleground states unlikely to be called for hours or even days.
US stock futures and the dollar surged in Asia on Wednesday, as investors leaned toward a Trump win.
A stronger US dollar makes greenback-denominated commodities such as oil more expensive for holders of other currencies, in turn curbing demand.
“If Trump wins, it is bullish for the oil market in the short-term due to prospects of tighter sanctions on Iranian oil,” said Soni Kumari, commodity strategist at ANZ Research.
