Brent crude oil futures dipped toward $75 per barrel on Friday but were still poised for a weekly gain as investors evaluated the potential impact of a Trump administration on crude prices and the Federal Reserve's recent rate cut.
Oil drops but may close the week rising
A Trump presidency could influence oil prices by boosting U.S. production and potentially imposing tariffs that could dampen demand from China, the world’s largest oil importer. Additionally, Hurricane Rafael, which disrupted U.S. crude production, is expected to move westward across the Gulf of Mexico, reducing its impact on oil fields.
Fed's impact on crude market
Meanwhile, oil prices found support after the Federal Reserve cut interest rates by 0.25 basis points to 4.50%-4.75% on Thursday in a bid to sustain economic growth. Speculation that a Trump administration might implement stricter sanctions on oil-producing nations such as Iran and Venezuela also provided upward pressure on prices, as these measures could restrict global supply.
