Oil prices held steady in energy commodities on Tuesday, ahead of the U.S. presidential election. It is retaining their steep overnight gains, however capped by concerns about demand and rising supplies.
In the previous session, hopes that major producers would hold back from ramping up output helped lift prices. Currently, the market faces surging COVID-19 cases, rising Libyan supplies and uncertainty about the outcome of today’s U.S. presidential elections.
At 0440 GMT, Brent crude futures inched up 1 cent to $38.98 a barrel. U.S. West Texas Intermediate crude futures were up 8 cents, or 0.2%, to $36.89 a barrel. Both benchmarks were up nearly 3% on Monday.
Italy, the latest European country to tighten pandemic-related restrictions includes limiting travel between the worst-hit regions. It is also imposing a nightly curfew, which will limit fuel demand.
Benchmark prices were down sharply over the past week. They had a brief reprieve on Monday, rising almost 3% after Russia’s oil minister held talks with domestic oil companies. That was to delay crude output increases planned for January.
The Organization of the Petroleum Exporting Countries and allies including Russia ( OPEC+), slashed oil output from May. It was to support prices and taper the cut to 7.7 million barrels per day in August. They are due to pare that further in January by 2 million bpd.
Saudi Arabia and Russia are both in favour of delaying the output increase in January. This is due to the resurgence of COVID-19 in Europe and the United States. In addition to that is the recent swift return of oil supply from Libya after an eight-month blockade.
OPEC will hold its next full meeting on Nov. 30.
Gold Down, Focuses on U.S. Elections
Gold declined on Tuesday morning in Asia’s precious metals. All eyes are now on the outcome of the U.S. election. Investors are on the watch for potential uncertainties.
By 11:46 PM ET (3:46 AM GMT), gold futures dropped 0.02% at $1,892.10, giving up earlier gains. A falling dollar also helped move prices higher earlier.
Investors looked to the yellow metal to take advantage of the many uncertainties about the outcome. The U.S. election moved into its final day of in-person voting. Democrat contender Joe Biden looks most likely to win over incumbent president Donald Trump. The race in battleground states, however, is far from certain.
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