Crude Futures Decline Due To Stronger Dollar And U.S. Election Impact


(MENAFN- Investor Ideas) Investorideas ( ), a go-to platform for big investing ideas releases market commentary from Terence Hove financial Markets Strategist Consultant to Exness.

Oil futures declined on Wednesday following two days of gains, driven by a stronger U.S. dollar and an unexpected rise in U.S. crude inventories. Projections of Donald Trump's victory in the U.S. presidential election led to an increase in the dollar and weighed on oil prices.

While Trump's potential return could lead to tighter sanctions on Iranian oil, offering short-term support, his focus on ramping up domestic oil production could weigh on global oil demand over the longer term, especially as trade tensions with China might intensify, further pressuring demand. Moreover, data from the American Petroleum Institute revealed a larger-than-expected rise in U.S. crude inventories, suggesting lower demand. These factors combine to create a bearish near-term outlook for global crude prices, as the stronger dollar and growing stockpiles suggest a possible slowdown in demand.

Meanwhile, oil and gas producers in the U.S. Gulf of Mexico began shutting down operations in anticipation of Tropical Storm Rafael, which was expected to strengthen into a hurricane. This precaution may cause temporary supply disruptions, contributing to near-term volatility in global crude prices.

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