Avoid the Spot Bunker Market on US Election Results Day: NSI

by Ship & Bunker News Team
Monday November 2, 2020

Buyers should avoid fixing bunker stems on Wednesday, according to brokerage NSI, as US election results are likely to cause volatility in crude prices.

Voters go to the polls in the US on Tuesday to choose the next president, with results expected to start being announced in the early hours of Wednesday morning in European time. 

"I suggest if you are hedging on this day, or going out into the market for physical, we will see wide swings as early results come in," Paul Hardy, head of business development at NSI, said in a note to clients Monday.

"My advice: make your judgement based on the available current data, and avoid fixing on election day unless you like a gamble."

The re-election of Donald Trump would be likely to spur a rebound in crude prices, Hardy said, while Joe Biden winning could trigger concerns over additional lockdowns in the US and subsequent demand erosion.