Market Outlook - Oil Prices Decline

Forex - The rise of the US dollar following predictions of Republican candidate Donald Trump's victory in the US elections led to a decline in oil prices in early European trading. Brent crude and WTI are trading at $74.27 and $70.80 per barrel, respectively, down 1.65%. A stronger dollar typically reduces demand by making commodities more expensive for holders of other currencies. In a note sent to clients, ING analysts stated, "In the medium to long term, a Trump victory could be more bearish for oil due to trade and foreign policy." Oil prices are also under pressure from signals of weakening demand in the US, as industry data referencing the American Petroleum Institute showed a larger-than-expected increase in US crude oil inventories.