Trump victory pushes oil prices lower by 1.5%

The international oil market has greeted the news of the Republican candidate, Donald Trump, defeating his Democratic counterpart, Hillary Clinton, in the United States presidential election by shedding off 1.5 per cent of its prices on Wednesday.

News monitored by Ripples Nigeria indicated that the price of Brent crude dropped 74 cent, selling at $44.1 from $45.75 following the shock reaction that trailed the result of the poll.

Particularly in Asia and the Middle East, the news of the election result, which filtered out as early as 0830 GMT, sent more spiral reactions on the December contract for US benchmark West Texas Intermediate and other countries’ deals with US, due for January delivery.

Experts said Nigeria, whose oil quality measures with the Brent crude is to also suffer some loses until the confidence in the international market is restored.

Said Simeon Chukwurah, an oil market analysts: “The reaction is not unexpected given the tough talk that Trump was associated with throughout the campaign. It is a genuine fear but there is nothing to show that normalcy will be restored soon on many economic fronts until he lays out his economic blue print.

“More of such negative reactions are bound to trail stock markets all over the world, including trade and multi-lateral relations.”

Read also: FG to settle JVC cash call debt with $5bn crude

He predicted that crude oil price will suffer longer loses because Russia, which is a non OPEC member country is planning flooding the market with its crude in line with Trump’s inclination to work with the country.

He said the development is a strong warning to Nigeria to work harder towards finding alternative source of revenue to oil and gas, if it wants to enjoy a robust economy.

Though Trump in his speech, after Clinton had conceded victory to him, sounded conciliatory, analysts insisted there were yet to be strong evidence from him that the international business community will trust him .

The market reaction has equally affected the foreign exchange markets and instruments, including gold, with dollar shedding 5 per cent value in favour of Euro and other major currencies.
By Emma Eke….

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now