Price at the Pump: Will The Presidential Election Impact Fuel Prices?

Oil prices have been pulled in several directions over the past couple of weeks, but making very little movement one way or the other.  West Texas Crude was trading around $71 in Monday’s action.  Patrick DeHaan with GasBuddy.com says one of the biggest things weighing on oil prices right now is the economic slowdown taking place in China.

“China is the world's second largest oil consuming nation behind the United States and an economic slowdown there poses a risk to oil demand," DeHaan noted.  "And so All in all oil, prices digesting the Chinese economy, the slowdown there, as well as lower risk from the Middle East, although the OPEC decision over the weekend is now causing oil to go up a little bit today.”

DeHaan said on the other end of the spectrum is OPEC, which announced over the weekend plans to delay its proposed production increase until the month of January.  DeHaan added he wouldn’t be surprised if OPEC announces another delay, potentially a three-month delay in the coming weeks.

The big question for many American’s is what impact will Tuesday’s presidential election have on oil prices, now and into the future.  DeHaan said oil investors don’t share in the anxiety among many Americans surrounding Tuesday’s election, and possible ripples.

“But I do not expect any immediate impacts on gas prices," DeHaan said.  "I do believe that gas prices will continue their seasonal trends of declining that is normal for this time of year as well, worth noting that prices decline almost every autumn. Simply because Americans are staying inside more and more as temperatures cool off.” 

DeHaan added despite two massive hurricanes that devastated the southeastern portion of the county, weather has not been a big issue for oil prices, and with the end of hurricanes season in sight, he’s hopeful that’s a trend that will continue.

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