Crude oil futures fall over 4 per cent as Donald Trump leads US 2016 election

Trump held slight leads in the vital battleground states of Florida, Virginia and Ohio on Tuesday, clinging to a narrow advantage over Clinton in key states.

By: Reuters | Singapore | Updated: November 9, 2016 1:54 pm
Donald Trump, Hillary Clinton, US Election Live, US presidential elections, US presidential elections 2016, US elections oil prices, oil prices, 2016 US election Live Update, US presidential elections live updates, US presidential elections voting updates, US Election 2016  After seesawing early, Brent prices were trading down over 2 percent from their last settlement, at .11 per barrel at 0231 GMT. US West Texas Intermediate (WTI) crude oil futures fell 2.6 percent to .82 per barrel.

US crude oil futures fall over 4 per cent to below $43.17 per barrel as Donald Trump pulls forward in US Presidential elections. Oil prices turned lower on Wednesday as early counting showed Republican Donald Trump and Democrat Hillary Clinton waging a close battle in several crucial battleground states in the US presidential election. With traders glued to their screens, Brent crude futures only started trading shortly before 0100 GMT, highly unusual for the international oil benchmark.

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After seesawing early, Brent prices were trading down over 2 percent from their last settlement, at $45.11 per barrel at 0231 GMT. US West Texas Intermediate (WTI) crude oil futures fell 2.6 percent to $43.82 per barrel. Trump held slight leads in the vital battleground states of Florida, Virginia and Ohio on Tuesday, clinging to a narrow advantage over Clinton in key states that could decide their race for the White House.

“Volumes are eerily low… this morning, which means a lot of investors are still sitting on the side lines waiting for further confirmation of the outcome of the US election,” said Gary Huxtable, client advisor at Atlantic Pacific Securities. “The main show today will be the US presidential election results coming in over the Asia morning,” said Jeffrey Halley, senior market analyst at OANDA brokerage in Singapore, although he added that a report by the American Petroleum Institute (API) showing crude inventory figures rising by 4.4 million barrel was weighing on markets.

“Action today will be dictated by results from the US election,” said ANZ bank in a note. In Asian oil markets, analysts were still musing over mixed oil data coming out of China on Tuesday, which showed a fall in crude imports and a rise in exports of refined products like diesel or gasoline.

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“Crude oil net imports fell to just 6.8 million barrels per day (bpd) in October, down from 8.1 million bpd the previous month. Although this is a very large drop, to the lowest monthly import level since January 2016, it is still up 8 percent year-on-year,” Barclays bank said in a note. Barclays said that the monthly decline was likely a result of falling government strategic stockpiling as prices in October were higher than now, making such purchases less attractive.

“Some (independent) ‘teapot’ refineries are also thought to have used up their crude oil import quotas for the year, and that may also be having a negative effect on crude oil import demand at the margin,” the bank said.