The mixed outcome of the US congressional mid-term elections saw stockmarket jump, but oil prices fell to their lowest levels since March as the tightening of Trump administration sanctions on Iran from Monday continued to splutter.
The Dow and S&P 500 were up by more than 1%, with the Nasdaq surging over 2% by 7am Sydney time on Thursday. Gold edged higher, but oil dipped as fears continue to grow that too much oil is emerging as Russia, the Saudis and the US boost production.
US crude futures lost 50 cents or 0.8% to settle at $US61.71 a barrel, the lowest since the middle of March.
Global benchmark January Brent crude fell 61 cents, or 0.9%, to $US71.52 a barrel in Europe.
The falls were partly driven by another rise in US stocks. The US Energy Information Administration said domestic crude oil stocks by 5.8 million barrels for the week ended November 2. That was the seventh consecutive week of gains.
OPEC members meet next Sunday to discuss the future of their reduced production caps – now around a million barrels a day. With global stocks rising there could be a push to re-impose the full 1.8 million barrels a day cap agreed to a couple of years ago. But that will probably depend on what happens to the volume of Iranian imports.
With the US granting eight countries (including Turkey, but though to include India, Japan and South Korea), Iranian exports will end up higher than previously though for the next six months.
The post-Fed meeting statement will be issued Friday morning because of the mid term polls delayed the meeting by a day.
