WTI Oil Closes Higher But Remains Rangebound Ahead of U.S. Election
West Texas Intermediate (WTI) crude oil closed higher on Friday, but remained firmly rangebound ahead of the U.S. presidential election as supply remains robust and Chinese demand remains light.
WTI crude oil for December delivery was closed up US$1.69 to settle at US$71.78 per barrel, while December Brent crude, the global benchmark, was last seen up US$1.61 to US$75.99.
Oil has stayed in a tight range since mid-month as traders avoid risk with polls showing a tight race between Kamala Harris and Donald Trump, while Israel's response to Iran's Oct.1 missile attack is awaited and China's economy remains muted after its government introduces stimulus measures that have not yet boosted the No.1 oil importer's economy.
"The market is not exactly paralyzed but uncertainty makes investors understandably and justifiably pragmatic. It appears that they find it unnecessarily risky to leave positions open for more than a day or maximum two. Two days of marching higher was followed by two days of profit-taking," PVM Oil Associates noted.
Supply remains robust, with the Energy Information Administration reporting U.S. oil inventories rose by 5.5-million barrels last week, while OPEC+ readies to return 2.2-million barrels per day to the market with monthly supply additions of 180,000 barrels per day beginning in December.
Source : MT Newswires
