Shafaq News/Oil prices fell more than 1% on Wednesday as the dollar firmed on market betsthe U.S. presidential election could swing in Republican Donald Trump's favourthough the race was still too close to call, and as U.S. crude stocks rose morethan forecast.
Brent crudeoil futures was last down 90 cents, or 1.2%, to trade at $74.63 per barrel at0450 GMT, while U.S. West Texas Intermediate (WTI) crude lost 82 cents, or1.1%, to trade at $71.17 per barrel.
"Theinitial signs have been favourable for the Republicans and while it's stillearly days, U.S. yields and the U.S. dollar are both trading higher," saidTony Sycamore, an analyst at IG Markets.
"Thisin turn is weighing on the crude oil price which has had a good run in recentsessions."
Trump waslast leading in the U.S. presidential election on Tuesday, having won 211Electoral College votes compared with 145 for Harris, with a third of the votecounted. The outcome of the race however remains uncertain with criticalbattleground states unlikely to be called for hours or even days.
U.S. stockfutures and the dollar surged in Asia on Wednesday, as investors leaned towarda Trump win.
A strongerU.S. dollar makes greenback-denominated commodities such as oil more expensivefor holders of other currencies, in turn curbing demand.
"IfTrump wins, it is bullish for the oil market in the short-term due to prospectsof tighter sanctions on Iranian oil," said Soni Kumari, commoditystrategist at ANZ Research.
In thelonger-term, however, it could be bearish as Trump's policies will besupportive for the U.S. oil and gas industry, while trade protectionism mayresult in weaker demand, she added.
Additionally,weakening demand signals also weighed on oil prices on Wednesday, said PhillipNova senior market analyst Priyanka Sachdeva in a note, after data from theAmerican Petroleum Institute data showed that U.S. crude inventories grew morethan forecast.
U.S. crudeoil stocks rose by 3.13 million barrels in the week ended Nov. 1, marketsources said, citing American Petroleum Institute figures, higher than a 1.1million barrels build-up projected in a Reuters poll.
Gasolineinventories fell by 928,000 barrels, largely in line with the poll, anddistillate stocks fell by 852,000 barrels, according to the sources.
(Reuters)