"Holding breath" waiting for news of US presidential election

Today's oil prices, November 6, both Brent and WTI are stagnant, "holding their breath" waiting for more news impacting the 2024 US Presidential Election.

Oil prices today, November 6, both Brent and WTI oil have stagnated, "holding their breath" waiting for more news affecting the 2024 US Presidential Election. (Source: Reuters)

Oil prices rose about 50 cents on Friday, supported by the possibility of a storm-related drop in U.S. Gulf of Mexico production and a weaker dollar on Election Day after polls showed a tight race for the White House.

Brent crude rose 45 cents, or 0.6%, to $75.53 a barrel. WTI crude rose 52 cents, or 0.7%, to $71.99 a barrel.

Oil prices are rising on supply/demand dynamics, geopolitics and election fever, with a little bit of weather to add stability, said Bob Yawger, director of energy futures at Mizuho.

The US presidential election between Republican candidate former President Donald Trump and Democratic candidate Vice President Kamala Harris is coming to an end.

The election results could take days to know and will likely face challenges and protests, said Tamas Varga, an analyst at brokerage and consultancy PVM.

The dollar fell to a three-week low against other currencies as traders balanced positions ahead of the election results, Reuters reported. A weaker dollar makes oil cheaper in other countries.

Energy companies in the Gulf of Mexico have begun evacuating workers from offshore platforms as Tropical Storm Rafael, which is expected to strengthen into a hurricane this week, could cut oil production by as much as 4 million barrels, analysts say.

Also related to oil prices, Saudi Arabia, the world's top oil exporter, cut the price of its flagship Arab Light crude it sells to Asia in December.

Data from the American Petroleum Institute showed that US crude inventories rose by 3.132 million barrels in the week ended November 1, much higher than analysts' forecasts for an increase of 1.8 million barrels. In contrast to the increase in crude inventories, US gasoline and distillate inventories fell by 928,000 barrels and 852,000 barrels, respectively.

Oil prices were little changed in the trading session on November 5, according to Yeap Jun Rong, market strategist at financial company IG International, because traders are still "on the sidelines" waiting for the results of the US Presidential Election, the US Federal Reserve's policy meeting and the meeting of the National People's Congress of China.

All eyes are on the congress in China for clarity on fiscal stimulus to boost the country’s demand outlook, but it’s unlikely to see any strong commitments ahead of the US presidential election, which will keep oil prices “on hold” for the time being, strategist Yeap said.

Domestic retail prices of gasoline on November 6 are as follows:

E5 RON 92 gasoline is not more than 19,408 VND/liter.

RON 95-III gasoline is not more than 20,503 VND/liter.

Diesel oil not more than 18,148 VND/liter.

Kerosene not more than 18,833 VND/liter.

Fuel oil not exceeding 16,461 VND/kg.

The above domestic retail price of gasoline and oil was adjusted by the Ministry of Finance and the Ministry of Industry and Trade in the price management session on the afternoon of October 31. Gasoline and oil prices have decreased and increased in opposite directions, with gasoline prices decreasing and oil prices increasing.

Thus, the price of gasoline has decreased 3 times in a row. The price of E5 RON 92 gasoline decreased by 284 VND/liter, RON 95-III gasoline decreased by 391 VND/liter, diesel increased by 91 VND/liter, kerosene increased by 263 VND/liter, and fuel oil increased by 232 VND/kg.

In this management period, the joint ministries did not set aside or use the Petroleum Price Stabilization Fund for E5 RON 92 gasoline, RON 95 gasoline, diesel oil, kerosene, and fuel oil.

Source: https://baoquocte.vn/gia-xang-dau-hom-nay-611-nin-tho-cho-tin-bau-cu-tong-thong-my-292736.html