Oil Down by More Than 1% on US Election

Oil prices fell Thursday, November 5, as Democratic candidate Joe Biden approaches victory in the exciting US presidential election, but Republicans are likely to retain control of the Senate, reducing the chances of implementing any major easing package from the repercussions of the Covid-19 pandemic.

By 07:56 GMT, WTI futures were down 60 cents, or 1.53%, to $ 38.55 a barrel. Brent crude futures were down 64 cents, or 1.55%, to $ 40.59 a barrel. The two contracts jumped by 4% on Wednesday.

Biden expected that he would outperform his rival, President Donald Trump, after winning two critical terms, while Republicans spoke of allegations of fraud, filed lawsuits and demanded a recount in a race whose outcome has not yet been decided.

The current vote count indicates that the Republicans will retain control of the Senate, while the Democrats will obtain a slight majority in the House of Representatives. The bipartisan split in Congress is likely to hinder Biden from enacting legislation on important priorities such as fighting climate change or easing sanctions on oil-producing Iran.