As a Biden victory in the presidential elections in the US affect world markets

2020-11-09 12:03:26
Machine translation
As a Biden victory in the presidential elections in the US affect world markets

the political uncertainty caused by the election of the President of the United States, and the possible escalation of tension in the country, oil prices on Friday reacted to the fall by 3.6 and 4.3%. However, the announcement of the election results in the States of Nevada and Pennsylvania, which will allow Biden to significantly more than the necessary 270 votes, was positive news for the market.

 

After this, the price of Brent crude on London's ICE Futures exchange rose 2.3 percent to 40.36 $/barrel, while December futures for WTI crude oil on the new York NYMEX - 2.5% to 38.07 $/barrel, which corresponds to Thursday.

 

a Further rise in prices will limit the decline in oil demand due to the strengthening of quarantine in Europe and growth in the number of infected coronavirus in the United States to a record 126 thousand tons per day.

 

At the same time Libya as of 1 November increased oil production to the highest since December, 2019 the level of 1 million barrels/day, increasing supply on the world market.

 

Experts fear that Biden may lift sanctions against Iran and Venezuela, which will increase the amount of offerings on the market of oil by 1,5 million barrels/day and the negative impact on the global balance.

 

Low oil demand will increase pressure on world prices of maize and vegetable oils, while China stops purchasing U.S. agricultural products in anticipation of the promised Biden the abolition of trade restrictions between the U.S. and China. Recall that the signing of the first part of the trade deal, China has agreed to buy agricultural products from the United States in the amount of $ 50 billion per year, but over the last three weeks almost did not buy American goods, pending the outcome of the election, so far behind the promises.

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