The oil market is facing a new round of challenges. Prices are under pressure from a stronger US dollar and ongoing problems in the Chinese economy. On November 7, crude oil prices dipped once again, Reuters reported.

The downtrend gained momentum following the US presidential election. A rise in the greenback and a decline in China’s oil imports outweighed the supply risks posed by Donald Trump’s presidency.

Analysts observed that a Republican victory triggered a sell-off in oil markets. Crude oil prices fell by more than $2 as the dollar gained strength. However, prices later stabilized, recovering some of their earlier losses. On November 7, Brent crude futures slid by 0.6% to $74.46 per barrel, while West Texas Intermediate futures dipped by 0.88% to settle at $71.06 per barrel.

Key negative factors for oil prices include a stronger greenback and weakening demand for hydrocarbons. On the positive side, experts highlight potentially tighter sanctions against Iran and Venezuela under Trump’s leadership as well as the ongoing military conflict in the Middle East. According to Ole Hansen, an analyst at Saxo Bank, some of these potential factors may not have an immediate impact. However, their collective effect is shaping the current landscape, resulting in oil price fluctuations within a narrow range. In the short term, Brent crude is at risk of losing value unless there is a significant geopolitical escalation, he added.

Currency strategists believe that Trump’s overall policy direction favors business growth, thus supporting global economic expansion and contributing to oil demand growth. "However, any interference in the Fed's easing policies could lead to further challenges for the oil market," analysts at Phillip Nova said.

Adding to the pressure on oil prices were reports that China’s crude oil imports fell by 9% in October, marking the sixth consecutive month of year-over-year declines in oil imports.

Many experts anticipate that Trump will reinstate the policy of "maximum pressure," particularly through heightened sanctions on Iranian oil exports. According to Energy Aspects, this measure could reduce crude supplies by 1 million barrels per day.