Oil prices increase 3% after Trump falsely claims victory in closely fought US election
Prices of oil have increased more than 3% on Wednesday after President Donald Trump falsely claimed victory in closely fought U.S. election with millions of votes still to be counted and after data showed a large decline in U.S. crude inventories.
A victory by Trump is viewed as bullish for oil because of sanctions on Iran and his support for Saudi-led oil production cuts to support prices.
A contested result and prolonged uncertainty is seen as the most bearish outcome for oil and markets in general, while a win for Joe Biden would be seen as bearish to neutral because of his support for green policies and softer stance on Iran. Already President Donald Trump has indicated his intention to contest the outcome of the elections at the supreme court.
President Donald Trump’s campaign on Wednesday said that it had filed suits to stop the counting of ballots in Michigan and Pennsylvania, as the campaign demanded more access to observe the tallying process at numerous locations in those battleground states.
The Trump campaign also said that its lawsuit demands that the campaign be allowed to “review those ballots which were opened and counted while we did not have meaningful access.
West Texas Intermediate was up $1.28, or 3.4%, at $38.94 a barrel by 12:44 p.m. ET (1744 GMT.) Brent crude was up by $1.36, or 3.4%, at $41.07 a barrel. Both benchmarks extended gains to session highs after data showed U.S. crude inventories fell 8 million barrels last week as Hurricane Zeta forced production declines in the Gulf of Mexico during the period.