Biden’s withdrawal influences Brent

• Biden's exit fuels market uncertainty globally
   
• Oil prices drop towards $80
   
• US political risks may influence oil via dollar
   
• Future policies of new administration in focus
   
• Concerns over Chinese demand dampen oil outlook

President Biden’s decision to withdraw from the election race has introduced uncertainty into global financial markets.

Currently, oil markets are concentrating on the existing supply-demand dynamics, with US crude prices falling towards $80/bbl.
 

Despite this, US political risks could still influence oil prices through the US dollar in the short term.

This may continue until markets can assess how the incoming administration’s policies will affect domestic crude production.

At the moment, several factors are weighing on oil prices, suggesting a potential decline.

Historically, crude prices have demonstrated average monthly declines from August through November over the course of the past five years.

Bearish mood is also being amplified by renewed concerns over Chinese demand, given the absence of further economic aid from Beijing.

Traders are now looking for support which may potentially come from the US stockpile data.

However, it may have a very limited effect on the markets.