On Tuesday, 5 November, oil prices showed slight fluctuations in a narrow range ahead of the US presidential election. After rising by more than 2% in the previous session, Brent futures fell by 3 cents, or 0.04%, to $75.05 per barrel, while West Texas Intermediate (WTI) crude oil in the US was trading at $71.43 per barrel, down 4 cents, or 0.06%, from the previous value. It is reported by enkorr.
Oil prices were supported by the decision of OPEC+ to postpone the planned production increase to December, given the volatile demand and rising non-OPEC supply that depressed markets. However, experts warn that market risks remain due to a busy week ahead – the US presidential election, Federal Reserve and National People’s Congress (NPC) meetings could increase volatility. IG market strategist Yep Jun Rong notes that any delay in the announcement of election results or disputes could pose short-term risks to markets.
In October, OPEC oil production increased due to the resumption of production in Libya, although Iraq’s efforts to fulfil its OPEC+ commitments limited the increase. Iran is also planning to increase production by 250,000 barrels per day, which may further affect the market.
In addition, a tropical storm in the Gulf of Mexico is expected to strengthen to a Category 2 hurricane, which could reduce oil production by 4 million barrels. Ahead of the weekly report on US stockpiles due on Wednesday, experts predict an increase in crude oil stocks in the country, although distillate and gasoline stocks are likely to decline.
