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Hong Kong - Oil rebounded amid a broader market rally ahead of the US election as Algeria remains confident as the members of the Organisation of Petroleum Exporting Countries (OPEC) will set output quotas at its next meeting to manage production.
Futures advanced as much as 1.4% in New York as equities climbed after the Federal Bureau of Investigation said it maintains the view that Hillary Clinton’s handling of her e-mails wasn’t a crime.
There is no going back on the agreement set in Algiers in September to curb output, Algeria’s energy minister said, according to state-run news agency APS.
A magnitude 5 earthquake struck Oklahoma on Sunday near the largest US oil storage hub, prompting some pipeline operators to shut down operations at the site as a precaution.
Oil has retreated below $45 a barrel following the failure of OPEC to agree on output quotas for member countries on October 28, which must happen before a deal can be finalised.
OPEC pumped at a record rate in October, according to data compiled by Bloomberg. Asian equities and US stock index futures gained ahead of Tuesday’s election.
"There’s going to be plenty of scope for volatility around the election, but I think markets are adjusting to the likelihood the FBI matter improves Clinton’s chances," said Ric Spooner, a chief market analyst at CMC Markets in Sydney.
"The market will continue to have a watching brief on OPEC."
West Texas Intermediate for December delivery rose as much as 61 cents to $44.68 a barrel on the New York Mercantile Exchange, and was at $44.66 at 1:20 in Hong Kong. The contract slid 59 cents to $44.07 on Friday.
Total volume traded was about 13% below the 100-day average. Prices slipped 9.5% last week, the most since the period ending January 15.
US earthquake
Brent for January settlement rose as much as 56 cents, to $46.14 a barrel on the London-based ICE Futures Europe exchange. Prices declined 8.3% last week, the most since January. The global benchmark traded at an 84-cent premium to January WTI.
The MSCI Asia Pacific Index advanced as much as 0.5%, climbing for the first time in four sessions. The FBI is sticking with its view after reviewing new communications potentially related to the Democratic candidate, director James Comey said in a letter to Congress.
The earthquake occurred 2 kilometres west of Cushing at a depth of 5 kilometres, the US Geological Survey said on its website. Magellan Midstream Partners, a pipeline operator, is working through a controlled shutdown of its assets in the area, spokesman Bruce Heine said in an e-mailed statement. There was no damage to its assets and it expects to resume operations on Monday, he said.
Oil-market news:
The OPEC technical committee that met last month proposed that the deal to cut output extend for one year starting in January, to be reviewed after six months, state-run news agency APS reported, citing Algerian Energy Minister Noureddine Boutarfa.
Saudi Arabia didn’t threaten to increase its oil production if other OPEC members wouldn’t agree to make cuts, OPEC Secretary-General Mohammed Barkindo said on Friday.
Colonial Pipeline restarted the largest US gasoline line Sunday, six days after an explosion and fire in Alabama during planned work.
