Oil prices settled lower on Wednesday as investors weighed a strong US Dollar as Donald Trump won the US presidential elections.

Brent crude oil futures settled down 61 cents, or 0.81 percent at $74.92 per barrel while the US West Texas Intermediate (WTI) crude settled down 30 cents or 0.42 percent to $71.69.

Mr Trump’s victory in the US presidential election unleashed a massive rally in the Dollar and since a stronger Dollar makes commodities such as oil more expensive for holders of other currencies, prices fell.

The election of the man who once held office from 2016 to 2020 means the renewal of sanctions on Iran and Venezuela, removing barrels from the market, which would be bullish.

Trump’s support for Israel’s Prime Minister Benjamin Netanyahu could heighten instability in the Middle East and
could boost oil prices as investors price in a potential disruption to global oil supplies.

When he assumes office, it is expected that he will continue to support Israel’s efforts.

Commodity experts at Standard Chartered have predicted that OPEC+’s actions are likely to determine the near- and mid-term trajectory of oil prices.

According to StanChart, much of the negative sentiment that has dominated oil markets over the past three months can be chalked up to misapprehensions about the tapering mechanism for the voluntary cuts made by eight OPEC+ countries.

Also, many traders are worried that the balance of oil demand growth and non-OPEC+ supply growth might not offset the scale of restored OPEC+output, leaving oil markets oversupplied.

OPEC recently announced that output increases would be postponed by a month until the start of 2025.

Prices were pressured after the US Energy Information Administration (EIA) reported an inventory build of 2.1 million barrels for the week to November 1.

This compared with a modest inventory draw of half a million barrels for the previous week and a crude oil inventory build for the week to November 1 as estimated by the American Petroleum Institute (API) on Tuesday.

Oil prices rose nearly 1 per cent on Tuesday as Americans voted for their next president between Republican former President Donald Trump and Democratic Vice President Kamala Harris amid a storm expected to cut US output in the Gulf of Mexico.

Brent crude oil futures rose 45 cents, or 0.6 per cent to settle at $75.53 a barrel while the US West Texas Intermediate (WTI) crude rose 52 cents, or 0.7 percent to settle at $71.99.

The US presidential contest led the US Dollar to drop to a three-week low against a basket of other currencies as traders squared positions ahead of election results.

A weaker US Dollar makes oil less expensive in other countries and this lends support to oil prices.

Also, in the US, energy firms in the Gulf of Mexico started evacuating workers from offshore platforms ahead of Tropical Storm Rafael, on track to strengthen into a hurricane this week.

Market analysts say the storm could reduce oil production by about 4 million barrels.

Earlier in the year, the Energy Information Administration (EIA) predicted up to 25 named storms for the hurricane season, warning that it would affect the country’s oil and gas production.

These developments extend gains, lapping on to the news that the Organisation of the Petroleum Exporting Countries and their allies in OPEC+ said they would push back a production hike by a month starting in December.

The decision came as weak demand and rising non-OPEC supply weakened the markets.

Meanwhile, supportive data from the US also provided support as the US services sector accelerated to a more than two-year high in October as employment rebounded strongly. This data suggests that September was a different outcome.

In a different outcome, the US trade deficit surged to a two-and-half-year high in September.

The market is also looking at China’s National People’s Congress (NPC) meeting for any clarity on fiscal stimulus to uplift the country’s demand outlook.

Pressure came as crude oil inventories in the US rose by 3.132 million barrels for the week ending November 1, according to the American Petroleum Institute (API). For the week prior, the API reported a 573,00-barrel dip in crude inventories.

So far this year, crude oil inventories have slipped by just over 3 million barrels since the beginning of the year, according to API data.

In a series of raids across Rivers, Bayelsa, Akwa Ibom, and Delta states, troops from the 6th Division of the Nigerian Army seized 700,000 liters of stolen petroleum products, sealed 29 illegal refining sites, and arrested 24 suspected oil thieves.

In a statement issued by the Division’s Public Relations Officer, Lt. Col. Danjuma Jonah, it was noted that 14 boats involved in crude oil theft were also destroyed during the operation.

Jonah disclosed that the raids were conducted between October 28 and November 3, 2024.

He revealed that the troops intercepted a large wooden boat carrying over 150,000 liters of stolen crude oil in the Kula area of Akuku-Toru Local Government Area of Rivers State.

Providing a breakdown of the operation, Jonah stated, “Another boat carrying 50,000 liters of crude oil was seized, while three illegal refining sites were dismantled, and cooking pots containing 20,000 liters of stolen diesel were confiscated. Troops also dismantled ten illegal refining sites in Kay and Abesa in Akuku-Toru LGA, seizing 400,000 liters of illegally refined diesel.”

In Bayelsa State, soldiers deactivated two illegal refining sites at Boma Creek in Southern Ijaw LGA, recovering storage tanks holding over 2,500 liters of stolen crude. Similarly, operations in Obughene Creek in Southern Ijaw yielded over 4,500 liters of stolen crude, while another 3,000 liters of illicit product were seized at West Boma Creek.

In Akwa Ibom State, troops intercepted two Toyota Camrys loaded with illegally refined diesel, concealed in nylon bags, totaling 3,000 liters. The vehicles were stopped along the Ikot Abasi-Abak road, and the drivers were detained.

In Delta State, multiple raids were conducted, including the interception of a tricycle in Kwale, Ndokwa West LGA, carrying stolen iron pipes allegedly taken from decommissioned Oando pipelines.

Another raid in Patani town uncovered a storage dump containing 40 jerricans of stolen products, while troops patrolling Uro Community waterways intercepted a wooden boat with 200 sacks of premium motor spirit,” he concluded.

The statement added that suspects arrested during the raids have been handed over to relevant authorities for prosecution.