US elections and OPEC+ decision — what is happening to oil prices
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As OPEC+ postponed its plans to increase oil production in December, oil prices on Tuesday, November 5, raised in a narrow range on the eve of the extremely close US presidential election.
This was reported by Reuters.
Brent сrude futures rose 45 cents, or 0.6%, to $75.53 per barrel by 12:26 GMT.
West Texas Intermediate crude futures in the US rose 47 cents, or 0.7%, to $71.94 per barrel.
"The fate of this election is important for the oil market, as Donald Trump’s victory could have serious implications for international trade, geopolitical relations, US energy policy and international climate policy," analysts at French Engie Group said.
What affected the price of raw materials
The announcement by the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, that they plan to increase oil production from December supported oil prices as weak demand and rising OPEC supply did not dampen markets.
However, risks remain limited after a busy week that included election in the United States, meetings of the Federal Reserve System and National People’s Congress of China (NPC).
Now, polls show that the presidential race in the United States will be tight, and any delay in the election or even conflict could create risks for broader markets or drag them out for longer.
A Reuters poll showed Libya resumed OPEC oil production in October, leading to a rebound in output. However, further efforts of Iraq to meet its commitments to the broader OPEC+ alliance limited the gains.
Iran also plans to increase output by 250,000 barrels per day.
Researchers predict that a storm that is likely to strengthen into a hurricane in the Gulf of Mexico this week could cut U.S. oil output by about 4 million barrels.
A Reuters poll conducted on Monday, November 4, ahead of weekly U.S. crude inventories on Wednesday, showed that U.S. crude inventories likely rose last week, while distillate and gasoline inventories fell.
It should be recalled that the agreement, which was concluded by the Hungarian energy company Mol Nyrt, will allow the continuation of the supply of Russian crude oil through pipelines passing through Ukraine. The report also did not specify which company or companies will carry out the supply.
We also wrote that by using "Tatneft", rather than "Lukoil", the Russians are circumventing sanctions. Meanwhile, Ukraine receives more than a million tons of oil from Russia every month.
