Oil Prices Rise as Gulf of Mexico Output Falls, Dollar Drops

Oil prices extended gains on Thursday, driven by a decline in production in the Gulf of Mexico due to a new hurricane, as well as a weaker dollar that provided some support to prices. Investors continue to assess the impact of Donald Trump’s victory in the US elections on the oil market.

Brent crude futures for January delivery rose 1.35% to $75.95 a barrel, while Nymex crude futures for December delivery rose 1.35% to $72.66 a barrel.

This rise came against the backdrop of the disruption of about 17% of oil production capacity in the Gulf of Mexico due to Hurricane Rafael, which is hitting Cuba, with expectations that it will reach US territory, according to a statement by the US Environmental Protection Agency.

The dollar index also fell by 0.65% to 104.4 points, making oil less expensive for holders of other currencies. However, weak Chinese demand limited the expansion of gains, with customs data showing China imported 44.7 million tons of crude oil in October, down 2% from September, the sixth straight decline.

Investors are also watching for the impact of Trump’s victory on oil policy, with some concerned that he could impose additional sanctions on oil supplies from Iran and Venezuela.