US oil prices fell in early trade on Thursday as the dollar strengthened on expectations the Republican Party would keep control of the Senate following the US election, holding back any huge Covid-19 relief package.
US West Texas Intermediate (WTI) crude futures dropped 29 cents, or 0.7%, to $38.86 a barrel at 0042 GMT.
Brent crude futures had yet to start trading. Both benchmark contracts jumped around 4% on Wednesday.
“The volatility in oil will remain because of its sensitivity to the US dollar. And the US dollar will remain volatile for at least the next few days as the US election still has to be worked out,” said Commonwealth Bank commodities analyst Vivek Dhar.
