Oil Prices Fall as Early Results Signal Trump Strength in U.S. Election

Crude-oil prices dropped to a more than three-month low in mid-morning Asia trade on Wednesday as Republican nominee Donald Trump showed strength in early results in the U.S. presidential race, sparking jitters across global equities and commodities, according to The Wall Street Journal.

The result of the contest between Democrat Hillary Clinton and Trump is expected to be called possibly by early afternoon Asia time.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $43.42 a barrel at 0224 GMT, down $1.56 in the Globex electronic session. January Brent crude on London’s ICE Futures exchange fell $1.39 to $44.65 a barrel. Oil prices have been volatile as early results trickled in.

“If Donald Trump wins, then financial and commodity markets will be very volatile due to fear of the unknown, and I’m sure oil will be no different,” said Richard Gorry, director of the Singapore-based energy consultancy JBC Energy.

Many analysts say a Trump victory could see a broad selloff in energy futures as he has touted U.S. fracking as key to the country’s energy independence.

On the other hand, some say that if Clinton wins, it would set off an initial celebration rally of 2% to 3% in global oil prices because her presidency would represent a continuation of existing U.S. foreign and trade polices, with fewer surprises.