Oil prices rose nearly 1% on Thursday, with Brent crude up 71 cents (0.95%) to $75.63 a barrel and U.S. WTI crude increasing 67 cents (0.93%) to $72.36. The market reacted to potential supply impacts from President-elect Donald Trump’s policies, including the possibility of renewed sanctions on Iran and Venezuela, which could reduce oil availability, noted Andrew Lipow of Lipow Oil Associates: “The market is now looking into what Donald Trump’s policies might be.” On Wednesday, Trump’s election triggered an initial sell-off, dropping oil by over $2 as the dollar strengthened, though prices recovered to close down less than 1%.
Other factors supported prices, including a quarter-point interest rate cut by the U.S. Federal Reserve, boosting demand prospects. Supply cuts also played a role, with over 22% of U.S. Gulf Coast oil production shut down due to Hurricane Rafael, which also knocked out Cuba’s power grid on Wednesday. However, gains were limited by China’s 9% drop in crude imports in October—marking the sixth month of year-over-year declines—and by rising U.S. crude inventories. The dollar index, though down slightly on Thursday, remained near a recent high, making oil more expensive for holders of other currencies and adding downward pressure.