Oil prices dropped on Friday, resulting in a weekly loss, largely due to disappointing U.S. jobs data for August. This suppressed the support that prices had gained earlier from OPEC+ producers delaying their planned supply increases. On Thursday, Brent crude fell to its lowest level since June 2023, despite a reduction in U.S. oil inventories and OPEC+’s decision to postpone a production boost.
Another factor pushing oil prices lower this week was the prospect of a resolution between rival factions in Libya, which could reopen the country’s crude exports. While the majority of exports remain on hold, limited loadings from storage have been allowed.
In its weekly report, Baker Hughes noted that U.S. energy companies decreased the number of active oil and natural gas rigs for the fourth week in a row. This marks the first time such a stretch has occurred since late June.
Earlier in the week, oil prices saw a slight uptick on Monday due to concerns that an approaching hurricane could disrupt oil production and refining along the U.S. Gulf Coast. The price increase followed a steep decline on Friday when Brent and U.S. diesel futures both closed at their lowest levels since December 2021. Similarly, WTI crude oil reached its lowest price since June 2023.
Additionally, the OPEC+ group of oil producers has postponed a planned increase in output by 180,000 barrels per day (bpd) for October, delaying it by two months due to the sharp decline in oil prices.
On Tuesday, Brent crude futures dropped to their lowest point since December 2021. This decline was driven by OPEC’s downward revision of its demand forecast for 2024 and 2025, which outweighed concerns about supply disruptions from Tropical Storm Francine. Both benchmarks fell by over $2 during the session.
In Nigeria, oil production remains underwhelming, placing increased economic strain on West Africa’s largest economy. The OPEC September Monthly Oil Market Report shows that Nigeria’s crude oil production rose from 1.307 million barrels per day (bpd) in July to 1.352 million bpd in August.
OPEC’s data indicates a modest increase of 45,000 bpd, based on figures from the Federal Government (FG). However, this challenges the government’s claim that daily oil production was nearing 1.6 million bpd.
In May, Nigeria’s oil output fell to 1.25 million bpd, despite statements from the Nigerian National Petroleum Company Limited suggesting production was close to 1.7 million bpd. OPEC reported that Nigeria’s crude production dropped by 30,000 bpd, declining from 1.28 million bpd in April to 1.25 million bpd in May.
In the interim, oil prices rebounded by over 1% on Wednesday, recovering some of the losses from the previous day. Concerns about the impact of Hurricane Francine on U.S. oil production—the world’s largest producer—offset fears of weakening global demand.
Our write-up from last week captured the potential impact of the upcoming U.S. elections on the cryptocurrency market. Since then, we’ve observed a bounce in Bitcoin by approximately 3% and Ethereum by around 2%. This uptick is highly linked to the Trump and Harris debate that took place.
Market sentiment is a powerful factor in driving momentum, and the current movement might reflect solid support for Trump, who has expressed pro-crypto views this year. In contrast, Ripple Co-Founder and Executive Chairman, Chris Larsen, is one of 88 corporate leaders who have endorsed Vice President Kamala Harris for President in a recent letter.
Crypto companies have been actively involved in the U.S. presidential race, amassing a $169 million fund at Fairshake PAC (Political Action Committee), with Ripple being a prominent contributor. Beyond Fairshake, Ripple has also targeted at least one notable Democrat, with CEO Brad Garlinghouse supporting a PAC aligned with Senate Republicans. Fairshake PAC, which Ripple supports, focuses on advancing policies that promote workers’ rights and fair workplace treatment in the U.S.
Cryptocurrencies like Bitcoin (BTC) are likely to play a significant role in the upcoming U.S. presidential election. As the election approaches, more American crypto investors are paying close attention to candidates’ positions on regulating the industry.
According to a new report by Gemini, the crypto exchange founded by the Winklevoss twins, released on September 10, 2024, this trend is backed by data. Based on an online survey of 6,000 adults from the U.S., U.K., France, Singapore, and Turkey conducted between May 23 and June 28, 2024, reveals that 73% of U.S. crypto owners plan to consider a candidate’s stance on cryptocurrency regulation when voting.
Furthermore, 37% of these respondents said that a candidate’s position on crypto would have a ‘significant impact’ on their vote. All of this indicates that, for the first time in U.S. history, cryptocurrency has become a major issue in the presidential election.
Given the current trends and the impact of cryptocurrency on the U.S. elections, it’s advisable to steer clear of day trading and scalping at this time. Engaging in short-term trades without a thorough understanding of how news and market momentum influence prices can result in significant losses.
Experienced and confident traders may find opportunities to buy at lower prices and sell for a profit. However, those who are risk-averse or have a low tolerance for losses might prefer to stay out of the market altogether. Regardless of your strategy, it’s crucial to avoid getting caught in market volatility.
