Brent rises following Republican victory in US election

The front-month ICE Brent contract has traded $0.52/bbl higher on the day, to trade at $74.87/bbl at 09.00 GMT.

PHOTO: Oil barrels. Getty Images

Upward pressure:

Brent's price gained after the global oil market factored in Donald Trump’s pivotal victory in the high-stakes 2024 US election.

Trump’s return to the White House can have several implications for the global oil market, according to market analysts. His government could bring stringent sanctions on Iran, which could be a major blow to the crude oil supply.

“[Trump’s] his foreign policies could stoke supply disruptions,” ANZ Bank’s senior commodity strategist Daniel Hynes remarked. “Overall, we expect a Trump White House to be neutral to slightly bullish for the oil market,” he added.

Brent’s price also increased as US producers shut operations due to Hurricane Rafael. According to the US Bureau of Safety and Environmental Enforcement (BSEE), about 17.4% of the current oil production in the US Gulf of Mexico has been halted due to the hurricane.

“Hurricane Rafael in the US Gulf of Mexico continues to put oil and gas supply at risk,” two analysts from ING Bank said.

Downward pressure:

Brent’s price felt some downward pressure after the US Energy Information Administration (EIA) reported a surge in US crude stocks. Commercial crude oil inventories in the US rose by 2.15 million bbls to touch 428 million bbls in the week ending 1 November, according to the EIA.

“The EIA report was bearish on both the stocks and fuel demand fronts,” VANDA Insights’ founder and analyst Vandana Hari said.

A rise in US crude stocks indicates a possible slowdown in oil demand growth, which can put downward pressure on Brent’s price.

By Aparupa Mazumder

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