Oil rises slightly pending the outcome of the US election

Tuesday 05th November 2024 05:43 AM

London: Oil prices rose slightly on Tuesday, reflecting uncertainty over the outcome of the American election, and after the extension of voluntary oil production cuts by eight members of OPEC+.

Around 10:10 a.m. GMT (11:10 a.m. CET), the price of a barrel of Brent BRENT Brent, or North Sea crude, is a variation of crude oil serving as a benchmark in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It became the first international standard for setting oil prices. from the North Sea, for delivery in January, took 0,60% has 75,53 dollars.

Its American equivalent, the barrel of West Texas Intermediate (WTI WTI West Texas Intermediate (WTI), also called Texas Light Sweet, is a variation of crude oil that serves as a standard in setting the price of crude and as a raw material for oil futures contracts with the Nymex (New York Mercantile Exchange). ), the stock exchange specializing in energy.), for delivery in December, won 0,60%has 71,90 dollars.

“Attention is naturally focused on the presidential race“, says Tamas Varga, analyst at PVM, the result “will most likely be contested” and might not be known for days.

Analysts believe that a victory for Donald Trump, who favors fossil fuels, could push up prices in the short term, but in the longer term a trade war with China, the world's leading importer of black gold, would be unfavorable for the economy. demand for oil.

In China, moreover, the National People's Congress will meet this week to discuss new stimulus measures aimed at supporting the economy.

So far Beijing's announcements have not “not enough to drive up oil prices further“, explains Ipek Ozkardeskaya, analyst at Swissquote.

In addition, eight members of OPEC+ (Organization of the Petroleum Exporting Countries and its allies), including Saudi Arabia and Russia, announced on Sunday an extension of their oil production cuts until the end of December, thus postponing the reopening of the floodgates in the face of prices at half mast.

This is actually the second announcement of this type, “after having already postponed the reintroduction initially planned for October“, says Stephen Innes, analyst at SPI Asset Management.

The reintroduction of this volume must be done gradually, up to 180,000 barrels per month for twelve months, but this delay shows the organization's desire to support oil prices.

Commenter Oil rises slightly pending the outcome of the US election

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