After a couple of markets and corporation shares were greatly impacted mostly negatively by the recent conclusion of the U.S. Presidential elections ending in a victory for Republican Donald Trump, Oil futures are showing a new positive development after it touched $45 again following a series of declines.
Oil prices which have been declining for the past week amid growing unease over the lack of development on OPEC’s oil production cut have now recovered some losses from OPEC’s silence as the United States announced a new president. After OPEC announced the start of an oil production cut at the end of September, prices have extended gains to up to $51 strengthening its claim on a $60 oil price recovery before sliding down back again to as low as $44 on the lack of update and development from the OPEC regarding the oil production cap. A final decision and formal meeting
Although the price of oil inched higher as early as the election day itself with the U.S. West Texas Intermediate trading each barrel up by $45.23 which is one percent higher from its opening price, the WTI eventually closed to $43.72 as the numbers for each of the state’s collective votes came live decreasing confidence on a Clinton victory.
Despite Donald Trump’s undeniable victory, Oil prices did not slump further some even steadying after the conclusion of the U.S. elections and even after the decline in the late trading up to the closing, crude oil prices have recovered some of their huge losses over the past week.
Where is the oil price headed?
The upward trend led by the conclusion of the Algiers meeting back in September and the positive response on the oil production freeze prospect from both OPEC and non-OPEC member countries led the price of crude oil to peak to as much as $51 before dropping on growing investor concern and decreasing confidence on a production cap after countries such as Iran and Iraq stated their intentions on increasing their production despite of placing a cut.
As the price of oil dropped to as low as $44 losing a huge chunk of its gains for the past month, it inches a small percentage higher despite the announcement of Donald Trump’s victory in the U.S. presidential elections. Despite showing a small gain and the election outcome’s small effect on the price of oil markets, the price is not set to recover anytime soon to $50 since the market is yet to experience a myriad of political and market news following the election. The awaited date and update that would cement the price of oil markets would be the upcoming OPEC formal meeting this coming November 30 in Vienna.