Oil prices fell slightly on Tuesday as markets braced for uncertainty surrounding the US presidential election, after rising more than 2% in the last session as OPEC+ postponed plans to increase oil prices. production in December and eased supply concerns.
Brent lost 15 cents, or 0.2 percent, to $74.93 a barrel by 0106 GMT, while U.S. West Texas Intermediate was at $71.33 a barrel, down 14 cents, or 0.2 %.
“We are now in the calm before the storm,” said Tony Sycamore, market analyst at IG, adding that investors are focused on the outcome of the US election and the meeting of the National People's Congress (NPC) in China which could announce new stimulus measures.
Oil prices were supported by Sunday's announcement by the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, to push back a production increase for a month from December, as weak demand and increased non-OPEC supply depress markets.
Nonetheless, OPEC oil production rebounded in October thanks to the resumption of output in Libya, according to a Reuters survey, although additional efforts by Iraq to meet promised cuts to the alliance more broad range of OPEC+ have limited the gain.
OPEC producer Iran could supply more oil as Tehran approved a plan to increase production by 250,000 barrels per day, the oil ministry's Shana news site reported on Monday.
In the United States, a late-season tropical storm expected to strengthen into a Category 2 hurricane in the Gulf of Mexico this week could reduce oil production by about 4 million barrels, researchers say.
“Technically, crude oil needs to rebound above resistance at $71.50/72.50 to negate downside risks,” Mr. Sycamore said, referring to WTI prices.
“All of this suggests there won’t be a run to the upside in the near term.
Awaiting weekly U.S. oil data on Wednesday, a preliminary Reuters poll on Monday showed that U.S. crude inventories likely rose last week, while distillate and gasoline stocks fell.
