Crude oil futures remained stable as the market braced for the closely contested U.S. presidential election.
Recent support for oil prices came from OPEC+‘s decision to delay a planned production hike from December due to weak demand and rising non-OPEC supply.
The upcoming election, along with the Federal Reserve’s policy meeting and China’s National People’s Congress, has led to cautious trading, as traders could stay on the sidelines.
OPEC’s oil output rebounded in October, largely due to Libya resuming production, and Iran is planning to increase its output by 250,000 barrels per day.
While these developments could lead to more supply in the market, potential disruptions from a tropical storm in the Gulf of Mexico might reduce U.S. oil production by about 4 million barrels, providing a bullish counterbalance. At this time, the market seems to be in a waiting game, focusing on upcoming data releases and events that could impact global crude prices.
This uncertainty may lead to continued volatility, reinforcing a bearish outlook in the short term, but also leaving the door open for bullish scenarios if geopolitical or weather-related disruptions arise.
