Oil Holds Steady as Traders Await U.S. Election and OPEC+ Decisions
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Oil prices remained in a narrow range ahead of the closely contested U.S. presidential election, as OPEC+ postponed its production increase amid weak demand. Brent crude and WTI traded near previous levels after Monday’s gains, with analysts noting that the week’s major events—including the U.S. election, Fed policy meeting, and China’s NPC meeting—could add volatility. A potential tropical storm in the Gulf of Mexico also threatens U.S. oil production.
Oil Prices Trade Flat as Markets Await U.S. Election Results and Key OPEC+ Decisions
Oil prices held steady on Tuesday, with Brent crude futures ticking down slightly to $75.05 a barrel and West Texas Intermediate (WTI) crude down to $71.43. After gaining over 2% on Monday, oil’s narrow trading range reflects cautious sentiment as the U.S. presidential election and other critical events loom.
OPEC+ Production Plans and China’s Demand Outlook Keep Oil Steady
Oil prices found support after OPEC+ announced Sunday that it would delay a planned production increase from December to January. This move is in response to a weak demand forecast and rising non-OPEC supply, with OPEC output rebounding in October as Libya resumed production. Meanwhile, Iran also plans to boost its oil output by 250,000 barrels per day, which could add supply pressure.
Election Uncertainty and Broader Market Risks
The U.S. election is keeping markets in suspense, with polls indicating a tight race that could lead to delayed results and potential disputes. “Near-term risks to oil and other markets are elevated as we await clarity on the U.S. election results and potential policy changes,” said IG strategist Yeap Jun Rong. Further volatility could arise from the Federal Reserve’s policy decision and China’s NPC meeting, both set for later in the week.
Technical Outlook: Key Levels to Watch for WTI
Analyst Tony Sycamore at IG noted that WTI faces downside risks if it doesn’t break resistance at $71.50–$72.50. A sustained move above these levels could negate bearish momentum, but limited trading enthusiasm suggests price levels will likely hold in the near term.
Looking Ahead: Weekly Data and Weather Impacts
In the U.S., a tropical storm brewing in the Gulf of Mexico could impact oil production by up to 4 million barrels. Ahead of Wednesday’s U.S. oil inventory data, a Reuters poll expects an increase in crude stockpiles but a decrease in distillates and gasoline, which could influence short-term oil price movements.
Oil Prices Trade Flat as Markets Await U.S. Election Results and Key OPEC+ Decisions
Oil prices held steady on Tuesday, with Brent crude futures ticking down slightly to $75.05 a barrel and West Texas Intermediate (WTI) crude down to $71.43. After gaining over 2% on Monday, oil’s narrow trading range reflects cautious sentiment as the U.S. presidential election and other critical events loom.
OPEC+ Production Plans and China’s Demand Outlook Keep Oil Steady
Oil prices found support after OPEC+ announced Sunday that it would delay a planned production increase from December to January. This move is in response to a weak demand forecast and rising non-OPEC supply, with OPEC output rebounding in October as Libya resumed production. Meanwhile, Iran also plans to boost its oil output by 250,000 barrels per day, which could add supply pressure.
Election Uncertainty and Broader Market Risks
The U.S. election is keeping markets in suspense, with polls indicating a tight race that could lead to delayed results and potential disputes. “Near-term risks to oil and other markets are elevated as we await clarity on the U.S. election results and potential policy changes,” said IG strategist Yeap Jun Rong. Further volatility could arise from the Federal Reserve’s policy decision and China’s NPC meeting, both set for later in the week.
Technical Outlook: Key Levels to Watch for WTI
Analyst Tony Sycamore at IG noted that WTI faces downside risks if it doesn’t break resistance at $71.50–$72.50. A sustained move above these levels could negate bearish momentum, but limited trading enthusiasm suggests price levels will likely hold in the near term.
Looking Ahead: Weekly Data and Weather Impacts
In the U.S., a tropical storm brewing in the Gulf of Mexico could impact oil production by up to 4 million barrels. Ahead of Wednesday’s U.S. oil inventory data, a Reuters poll expects an increase in crude stockpiles but a decrease in distillates and gasoline, which could influence short-term oil price movements.