US oil prices slipped on early trading on Thursday as the dollar increased on bets that the Republican Party would control the Senate and hold back any massive COVID-19 relief package. US WTI crude CLc1 futures lost 29 cents (0.7%) to $38.86/barrel at 0042 GMT. Meanwhile, Brent crude LCOc1 futures had yet to trade. Oil prices typically fall when the dollar strengthens because it will be more expensive for foreign buyers. Both contracts gained about 4% on Wednesday on expectations that OPEC+ would delay its planned production increase in January.
Democratic Joe Biden said he was optimistic that he would win the presidential race after claiming victories in the crucial Midwestern states of Michigan and Wisconsin. However, even if he won the election, current vote counting suggests that the Republican would dominate the Senate and will likely hold back Biden from issuing huge fiscal packages.
