Oil Prices Rise Amid Election Uncertainty

  • Financial observers say that because the outlook for Trump's victory is better than expected, the risk appetite has risen.
  • A Biden victory could limit the US oil industry, which relies on extraction by fracking.
  • President Donald Trump has filed a lawsuit in federal court against counting votes in Wisconsin and Michigan.

Oil prices have risen due to the uncertainty of the outcome of the US presidential election. According to experts and world news sources, the financial markets were hoping for a definite result of the US presidential election. This ambiguity, and the possibility of Trump’s victory, would reduce Iran’s chances of returning to the oil market.

The New York Mercantile Exchange is a commodity futures exchange owned and operated by CME Group of Chicago. NYMEX is located at One North End Avenue in Brookfield Place in the Battery Park City section of Manhattan, New York City.

Brent North Sea crude traded up 91 cents, at $40.62 a barrel, on Wednesday. West Texas Intermediate traded up 86 cents, at $38.52 a barrel, on the New York Mercantile Exchange.

Markets have had to wait because the competition between the two presidential candidates, Donald Trump and Joe Biden, continues side by side in a number of US states. The final result is in an aura of ambiguity.

Financial observers say that because the outlook for Trump’s victory is better than expected, the risk appetite has risen.

Warren Patterson, a raw materials expert at ING Bank, says the oil price situation has benefited, and a Trump victory could accelerate the trend. “The reason is that if Trump wins, Iran will have less chance of returning to the oil market,” he said.

In addition to declining demand due to the Coronavirus crisis, Libya has increased its oil production following a ceasefire in the civil war. Thus, the supply of oil had a reduction in prices.

The US oil industry would also benefit from a Trump victory again. His rival, Joe Biden, is pushing for different environmental policies. A Biden victory could limit the US oil industry, which relies on extraction by fracking, a new technology.

Trump Sues in Michigan and Wisconsin

US President, Donald Trump

President Donald Trump has filed a lawsuit in federal court against counting votes in Wisconsin and Michigan. Trump is likely to call for a recount in Wisconsin.

In the US presidential election, while Joe Biden received 3.5 million more votes than Trump nationwide at current counts, Donald Trump questioned the accuracy of the counting results in Wisconsin and Michigan.

Biden appeared to have won the State of Michigan with 50.6% against Trump’s 47.9%. In the State of Wisconsin, Biden won with 49.6% of the vote to Trump’s 48.9%.

Thus, Biden won 10 electoral votes in Wisconsin, and 16 in Michigan.  Biden is believed to have won 264 electoral votes, six away from the presidency.

Trump’s campaign team has said that Donald Trump will most likely call for a recount in Wisconsin. A reporter from the United States says that this time too, the polls underestimated the power of Donald Trump supporters. “No one’s going to take our democracy away from us — not now, not ever,” Biden replied on Wednesday.

“What makes these charades especially pathetic is that while Trump is demanding recounts in places he has already lost, he’s simultaneously engaged in fruitless attempts to halt the counting of votes in other states in which he’s on the road to defeat,” said Biden’s Campaign spokesman Andrew Bates.

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Benedict Kasigara

I have been working as a freelance editor/writer since 2006. My specialist subject is film and television having worked for over 10 years from 2005 during which time I was the editor of the BFI Film and Television.

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