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GulfToday Report

Oil slumps on Thursday as the race to the White House narrows down with Joe Biden in the lead.

US West Texas Intermediate (WTI) crude futures dropped 64 cents, or 1.63%, to $38.51 a barrel at 04:40 GMT, while Brent crude futures fell 68 cents, or 1.65%, to $40.55 a barrel. Both contracts had jumped around 4% on Wednesday.

However, investors hope for a huge stimulus package might be dashed with the results looking like the Republicans will retain control of the Senate.

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Gold strong as Biden leads in US presidential election race

Oil slumps as Trump claims victory in race to the White House

Dollar gains as US election race tightens

After Joe Biden won in Michigan and Wisconsin, he predicted victory in the election. President Donald Trump on the other hand has filed lawsuits demanding a recount.

In a note by ANZ Research, the drop in the use of highway in France, Italy and Spain since late June is likely to apply pressure on the OPEC+ alliance to delay its planned rise in output by January.

On Wednesday oil prices spurted, this has heightened expectations that OPEC+ would hold off on bringing back 2 million bpd of supply in January.