Oil Steady Near $75 as Crude Enters Election Day Holding Pattern
Oil held in a narrow range as investors turned their full focus to the tight US presidential election after prices jumped on Monday, pushed higher by OPEC+’s supply-curb extension and tensions in the Middle East.
Brent traded near $75 a barrel after rising almost 3% in the previous session, while West Texas Intermediate was above $71. Polls suggest the race between Donald Trump and Kamala Harris remains very close. The outcome carries the potential to reshape US trade, foreign, security and climate policies, with far-reaching consequences for the commodity.
Crude’s tight trading pattern was matched by other major assets, with the dollar and equity futures barely changed ahead of election day in the US.
The international oil benchmark has lost 13% since the end of June on disappointing Chinese demand and surging supply from the Americas, particularly the US, prompting the OPEC+ alliance to push back a plan to restore production. Tensions in the Middle East, as Israel faces off with Iran after more than a year of conflict, have also buffeted prices.
“Markets are, indeed, facing a few very nervous days,” said Tamas Varga, an analyst at brokerage PVM. “Volatility will persist as results from individual states are announced.”
The US election remains on a knife edge after months of intense campaigning. A second Trump administration may be more welcoming to the US shale industry, over renewables. Separately, RBC Capital Markets LLC has said such an outcome may shift foreign policy, with the possibility of tighter sanctions against Iran but looser curbs on Russian oil flows.
Meanwhile, Tropical Storm Rafael threatened disruptions at US offshore oil and natural gas platforms in the Gulf of Mexico. Among producers, Shell Plc said it would evacuate some non-essential personnel in the area.
Brent for January settlement was up 0.4% at $75.47 a barrel as of 10:11 a.m. in London.
WTI for December delivery rose 0.5% to $71.84 a barrel.
Source : Bloomberg
