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Oil prices started Tuesday with a modest decline, down 0.2% for both Brent and WTI crude futures. After gaining over 2% in the previous session, this pause reflects the market’s anticipation of potential volatility tied to the U.S. presidential election and the upcoming National People’s Congress (NPC) meeting in China. These events could bring policy shifts or economic stimulus that impact demand, especially for industrial commodities like oil.
Brent crude futures dropped by 15 cents to $74.93 a barrel, while U.S. West Texas Intermediate (WTI) crude was down 14 cents to $71.33 a barrel. Traders are watching for election results, and the NPC meeting in China could signal more stimulus that would support demand.
See: Crude oil prices are attempting a recovery from recent lows near 65.256, showing a mild uptrend but facing resistance around 71.487 as seen on the VT Markets app.
One supportive factor for oil has been OPEC+’s decision to delay its December production hike, helping mitigate supply concerns. Sunday’s announcement from OPEC and its allies, including Russia, postponed the increase, a move attributed to weaker demand and rising non-OPEC supplies.
However, despite the delay, OPEC output in October saw an uptick, driven by Libya’s resumed production. Still, Iraq’s ongoing commitment to its OPEC+ production cut agreement somewhat countered this.
See also: Oil Climbs on Gulf Tensions, OPEC+ Outlook
Adding complexity to the supply side, Iran is set to increase its oil production by 250,000 barrels per day, as confirmed by the oil ministry’s news agency, Shana. This boost in output could weigh on global supply, depending on market conditions and Middle East developments.
Looking ahead to the U.S. weekly oil inventory report due on Wednesday, preliminary data from a Reuters poll indicates a likely rise in crude stockpiles, with potential declines in both distillate and gasoline inventories.
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