Crude oil prices declines as Biden pulls out of presidential race – London Business News | London Wallet

Oil prices remained in the negative territory, recording a third session in the red.

The announcement of Biden’s exit from the Presidential race implies risks for a potential policy change that could influence oil production and regulation in the United States.

Kamala Harris is expected to be potentially tougher on the oil industry, which could have implications on supply levels in crude markets.

At the same time, the market could see a surplus later this year and next year. Additional supply could weigh on prices if OPEC moves forward with phasing out its production cuts as planned. Moreover, the weaker economic data in major economies like the Eurozone and China could also impact future oil demand.

However, the weaker data from US inflation and labour market could help crude prices to find some support as hopes for interest rate cuts by the Fed increase. The latter could support a stronger demand for oil and oil products.