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Oil Heads Lower After Obama Wins Election

November 8, 2012 at 1:52 by Vladimir Vyun

Crude oil dropped along with other commodities after Barack Obama won the election and stayed as the US President for the second term. Traders are worried that the President will argue with the Congress, delaying implementations of regulations that are needed to avoid the fiscal cliff. US inventories of crude rose by 1.8 million barrels to 374.8 million barrels last week. The United States are the biggest oil consumer in the world.

Greece also remains a negative factor for the commodity markets. The Greek parliament should vote for the austerity measures that are demanded by the European Union in exchange for a bailout. Market participants fear that the country may leave the eurozone if the vote fails to approve the austerity.

Crude oil (light sweet) slumped from $88.54 to $84.83 per barrel on NYMEX yesterday, reaching $84.05 intraday — the lowest settlement since July 10.

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