Oil prices rose during Thursday's Asian trade, as concerns over supply risks from a Donald Trump presidency and an intensifying Gulf Coast hurricane outweighed the impact of a stronger U.S. dollar and increased inventories.
By 2:10 pm AEDT (3:10 am GMT) Brent crude oil futures gained 65 cents, or 0.9%, reaching US$75.57 per barrel, while U.S. West Texas Intermediate (WTI) crude climbed 55 cents, or 0.8%, to $72.22.
Market concerns focused on the potential for supply disruptions under a Trump administration, as renewed sanctions on Iran and Venezuela could reduce oil flows.
With Trump’s return, markets are pricing in the reimposition of stringent sanctions on Iranian oil exports, which could reduce supply by as much as one million barrels per day, though halting shipments to China may prove challenging.
In his first term, Trump also implemented severe sanctions on Venezuelan oil, which had been partially lifted under Biden before being re-enforced.
Meanwhile, Hurricane Rafael intensified to a Category 3 storm on Wednesday, prompting the shutdown of approximately 17.4% of oil production, or 304,418 barrels per day, in the Gulf of Mexico, according to the U.S. Bureau of Safety and Environmental Enforcement.
Among data releases, U.S. crude inventories increased by 2.1 million barrels to 427.7 million barrels for the week ending November 1, exceeding analyst expectations of a 1.2 million-barrel rise, the U.S. Energy Information Administration reported.