Oil Steadies With Middle East Tensions and US Election in Focus

Wedoany.com Report-Nov 5,  Oil steadied after jumping almost 3% on Monday on heightened tensions in the Middle East and OPEC+’s decision to delay restoring barrels to the market.

West Texas Intermediate traded near $72 a barrel after rising the most in more than three weeks in the previous session, while Brent closed above $75. Traders are on edge after Iran’s supreme leader warned over the weekend of a “crushing response” to the country’s enemies, escalating his rhetoric after taking a more measured tone earlier. 

The US crude benchmark has lost about 12% since the end of June on disappointing Chinese demand and surging supply from the Americas, particularly the US, prompting the OPEC+ alliance to push back its plan to restore production. The market is also jumpy ahead of the presidential election, which remains too close to call.