Oil prices down on probable Biden's victory

Crude oil prices fell significantly at the fourth trading session of the week amid macros from U.S election results showing presidential contender Joe Biden is within striking distance to clinch the U.S. presidency.

At the time of writing this report, Brent crude prices dropped over 1%, trading at $40.68/barrel, and the U.S based contract, West Texas Intermediate, also dropped over 1% to trade at $38.63.

The latest results seen by Nairametrics reveal Joe Biden is more likely to be the next United States president, as oil traders take their bullish off momentarily on the bias that Democrats have stronger support on renewables than fossil oils and will likely push an energy agenda more focused on green energy.

Although at the time of writing, the election has not been concluded yet with many battleground states decided by slim margins, which would most likely include numerous legal challenges as the odds are now in Joe Biden’s favor.

Brent crude is the leading global benchmark for Atlantic basin crude oils. The international benchmark is used to set the price of crude oil for about two-thirds of the world’s traded crude oil, including Nigeria’s crude (Bonny Light, Brass River, Qua Iboe, etc.).

Weighing hard on oil prices is present election results suggesting the Republicans appear poised to retain control of the upper chamber. At the same time, the blue party will hold a reduced majority in the House. This means a divided Congress would likely create road bumps for Joe Biden to smoothly carry out his primary agenda, like fighting climate change or easing sanctions on oil producer Iran.