Article / 07 November 2012 at 12:55 GMT

75-second video: Oil, the Obama victory and the fiscal cliff

Head of Commodity Strategy / Saxo Bank
Denmark

In this 75-second video, Ole Hansen, Commodities Strategist at Saxo Bank in Copenhagen, discusses how anticipation of a Barack Obama win caused the dollar to drop the day before yesterday's US election, which boosted US equity prices and energy markets.

He notes that Hurricane Sandy has reduced the availability of gasoline, which has caused some upside for crude prices, but that the U.S. fiscal cliff will limit upside in the short term.

With spending cuts and tax hikes that could limit demand, the fiscal cliff is a medium-term negative for oil prices, Hansen says.

 

  

2y
Massimo Russo Massimo Russo
I don't see clearly the link between Obama election's win and the oil price's movement.
The fiscal cliff is the principal argument that have a linki with the re-election of Obama. About this, I think that the policy strategy of Obama will be more strong on the reforms for to restore the public deficit.
2y
Ole Hansen Ole Hansen
The fiscal cliff would have been an issue no matter who won as Congress remains in a deadlock. Oil markets are worried about the potential negative impact on growth from a failure to reach an agreement. Pressure is on and President and Congress have limited time available to reach a deal or a compromise.
2y
allperformers allperformers
Is it right in saying that Obama secured victory due to his support in the big states? I saw the county wins and the GOP won the interior of the whole of the US. Surely, in any case this is going to be a deadlock as those states are against more QE etc...

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