Oil prices dropped on Thursday morning as a highly contested presidential election continued to be too close to call as of 11 a.m. ET, although Democratic candidate Joe Biden was within six electoral votes to win.
As of 11:37 a.m. ET on Thursday,
A Trump win would be more bullish for oil, analysts say, because of the President’s continued pro-oil policies. Biden, on the other hand, has said he would seek a
Yet, a President Biden would not be as bad for oil prices as it would look on the face of it, analysts say. First, they expect a weaker U.S. dollar, which typically boosts oil prices because crude becomes cheaper for holders of other currencies. Also, Republicans are set to keep the majority in the Senate while Democrats have lost a few seats in the House—this, according to analysts, would keep a President Biden from passing climate policies that could be too harsh on the oil industry.
“A Trump win will likely to be bullish for oil, at least more bullish than under a Biden administration,” Tamas Varga at oil brokerage PVM told
Oil prices jumped on Wednesday after the EIA reported an