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Oil rates restore ground as investors eye U.S. election fallout

Oil costs edged up on Thursday following a selloff set off by the U.S. presidential election, as dangers to oil supply from a Trump presidency and a. typhoon structure in the Gulf Coast exceeded a stronger U.S. dollar and higher inventories.

Brent crude oil futures increased 26 cents, or 0.35%, to. $ 75.18 per barrel by 0125 GMT. U.S. West Texas Intermediate. ( WTI) crude gained 16 cents or 0.22% to $71.85.

Concerns around a Trump presidency squeezing oil supply from. Iran and Venezuela in addition to an approaching storm more than. offset the post-election impact of a more powerful U.S. dollar and. ... higher-than-expected U.S. stocks, Tony Sycamore, a. market expert with IG, composed in a note.

Trump's election had actually initially set off a sell-off that. pushed oil rates down by more than $2 as the U.S. dollar rose. to its highest level since September 2022. However the front-month. agreements pared losses to settle 61 cents for Brent and 30. cents for WTI by the end of the Wednesday session.

Donald Trump is expected to reimpose his maximum pressure. policy of sanctions on Iranian oil. That could cut supply by as. much as 1 million barrels each day, according to an Energy Aspect. price quote, though experts caution it would be hard to stop. the flow of Iranian oil to China.

Trump in his very first term had actually also put in place harsher. sanctions on Venezuelan oil, steps that were quickly rolled. back by the Biden administration but later on reinstated.

In North America, Hurricane Rafael intensified into a. classification 3 cyclone on Wednesday, and about 17% of crude oil. production or 304,418 barrels each day in the U.S. Gulf of Mexico. had actually been shut in action, the U.S. Bureau of Safety and. Environmental Enforcement said.

U.S. unrefined stocks increased by 2.1 million barrels to 427.7. million barrels in the week ending on Nov. 1, the U.S. Energy. Details Administration said on Wednesday, compared to. expectations for a 1.1 million-barrel increase.

(source: Reuters)