Crude oil prices
December WTI (West Texas Intermediate) crude oil futures contracts fell 1.4% to $44.3 per barrel in electronic trade at 2:40 AM EST on November 9, 2016. Crude oil prices are near a one-month low.
Crude prices likely fell due to the bearish API (American Petroleum Institute) crude oil inventory report and Donald Trump’s winning the 2016 US presidential election.
Crude oil prices and Donald Trump
If Trump implements his proposed energy policies, it could increase US drilling activity. Read How Could Donald Trump Impact the US Energy Market? and How Could Hillary Clinton Impact the US Energy Market? to learn more.
Trump’s vision to make the United States independent of energy imports could see massive sell-offs in the US energy market. Traders believe that if Trump lifts regulatory restrictions on fracking, we could see $50 trillion worth of investments into US crude oil and natural gas and coal exploration and production activity. For more information on US energy dependence, read Does the US Depend on Energy Imports?
Impact on crude oil, stocks, and ETFs
Volatility in crude oil prices impacts the earnings of oil producers and refiners such as Phillips 66 (PSX), Tesoro (TSO), Valero (VLO), Synergy Resources (SYRG), and Cobalt International Energy (CIE).
The roller-coaster ride in crude oil and natural gas prices also affects funds such as the United States 12 Month Oil ETF (USL), the PowerShares DB Crude Oil Double Short ETN (DTO), the iShares Global Energy ETF (IXC), and the iShares US Energy ETF (IYE).
Read the next part of the series for updates on the API’s crude oil inventory report.