HOUSTON: Oil prices ticked up 1% on Thursday as investors considered stronger US fuel demand and reports that producer group OPEC+ could delay a planned output increase, in the few remaining days leading up to the US election next week.
Brent futures rose by 75 cents, or 1%, to $73.30 a barrel by 11:52 a.m. EDT. WTI futures were up $1.01, or 1.47%, at $69.62. Traders are standing by on the outcome of the US presidential election on Nov. 5, anxious to see what a Trump versus a Harris administration will mean for oil markets.
“The market is trying to figure out the impact of a Harris or Trump administration on oil production, sanctions and prices,” said Andrew Lipow, president of Lipow Oil Associates. Bar any significant market-moving events in the Middle East over the next five days, the market is likely to bide its time ahead of the election result before making any big moves, Lipow added.
Meanwhile, US gasoline stockpiles fell more than expected to a two-year low in the week ending Oct. 25, the Energy Information Administration said, while crude inventories registered a surprise drawdown as imports slipped.
“An unexpected drawdown in US crude and product stocks against projected builds provided some uplift for Brent futures this week,” Rystad Energy’s global head of commodity markets for oil, Mukesh Sahdev said in a note on Thursday.
Though the week did begin with a large sell off, after Israel showed some restraint in its retaliatory attacks on Iran over the weekend, Sahdev added. Further supporting oil prices on Thursday, OPEC+ could delay planned oil production increases from December by a month or more because of concern over soft oil demand and rising supply.
A decision could come as early as next week, Reuters reported. OPEC+ is scheduled to meet on Dec. 1 to decide its next policy steps. Elsewhere, manufacturing activity in China, the world’s biggest oil importer, expanded in October for the first time in six months, suggesting stimulus measures are having an effect.
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