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In trading on Tuesday (3), crude oil futures closed at their highest price in about a week, due to signs that OPEC + will postpone its plan to reduce production, and financial markets remain optimistic on election day.
Schneider Electric Senior Commodity Analyst Robbie Fraser said: “Like the broader market, participants in the crude oil futures market will certainly pay attention to the results of the US elections. Both candidates are opposed to the main energy policy measures, but this is not a big problem for oil. ” The extent of the net impact is unclear. “
Its report on Tuesday noted that “after the general election, the market will continue to see signs that OPEC + will delay its plan to reduce production and scale from January.” “The continued increase in the number of confirmed cases of the new crown in the United States and Europe means the demand for fuel for transportation. The outlook is diminishing.”
- The price of WTI crude oil futures for December delivery rose 85 cents, or nearly 2.3%, to settle at $ 37.66 a barrel.
- The price of Brent crude futures for January delivery rose 74 cents, or nearly 1.9%, to close at $ 39.71 a barrel. The intraday high reached $ 40.45.
According to Dow Jones market data, WTI and Brent crude oil futures prices closed at their highest since October 27.
Peter McNally, Global Head of Industry, Materials and Energy at Third Bridge, said: “Oil market sentiment is turning increasingly positive as the supply side appears to be tighter than previously thought and concerns on demand may also decrease. OPEC will hold a meeting at the end of this month, so there is still time to adjust and respond to the amount of oil that is returning to the market. “
Benchmark Market Rise on US Election Day
Although Biden, the Democratic Party, has always been ahead of Trump in the polls, his position as the leader of an indecisive state that may affect the results has been bled with Trump.
Velandera Energy CFO “If Biden complies with promised oil and gas restrictions, such actions can slow domestic oil production and cause oil prices to rise. But if Trump wins the election, the policy can continue.”
On Monday, news of Russia’s intention to postpone the relaxation of production quota restrictions in January caused a sharp reversal in crude prices that day. Commodities analyst Eugen Weinberg noted that “if Russia and Saudi Arabia agree, other OPEC members can do the same. After all, they will not forget the price war launched by Saudi Arabia in April / May this year. “. I want to take another risk and upset Saudi Arabia. “
Traders are also looking forward to Tuesday’s API data and Wednesday’s EIA inventory data. According to the S&P Global Platts survey, analysts expect on average a decrease in crude oil supply by 600,000 barrels per day, gasoline inventory by 1.1 million barrels per day and distillate inventory by 2.4 million barrels per day.
Other energy raw materials
- The price of gasoline futures for December delivery rose 2.4% to $ 1.0769 a gallon.
- Hot fuel oil futures for December delivery rose 1.3% to close at $ 1.1271 a gallon.
- The price of natural gas futures for December delivery fell almost 5.7% to close at US $ 3,059 per million Btu.
In response to the sharp drop in natural gas, Price Futures Group analyst Daniel Flynn reported that this week’s warmer weather forecast “may have cooled the bulls a bit. But early next week we’ll go back to the bulls. cold November wind and we may see prices fluctuate again. “
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