Oil mixed as election seen swinging to Clinton while OPEC doubts weigh
By Ethan Lou
NEW YORK (Reuters) – Oil prices edged higher on Monday, supported by a rebound in other asset classes after news that U.S. presidential candidate Hillary Clinton will not face charges over her emails, but gains were capped by a rallying dollar and doubts over OPEC’s planned production cuts.
U.S. crude futures were also supported by a weekly drop of 442,077 barrels of oil at the U.S. delivery hub in Cushing, Oklahoma for the week ended Nov. 4, according to traders citing energy monitoring service Genscape.
U.S. West Texas Intermediate (WTI) crude traded at $44.36 per barrel at 12:54 a.m. (1854 GMT), up 29 cents, or 0.7 percent.
Brent crude was up 10 cents, or 0.2 percent, at $45.68 a barrel.
The Federal Bureau of Investigation said it would not press charges against Clinton over her using a private email server. That indicated worse prospects for Republican candidate Donald Trump, whose stance on foreign policy, trade and immigration have unnerved the market.
“There’s a little bit less of a concern about the economy falling apart,” said Phil Flynn, analyst at Price Futures Group in Chicago.
U.S. stocks [.SPX] soared on Monday, a day before the U.S. presidential election, while the dollar strengthened on news of Clinton’s improved prospects, making greenback-denominated crude more expensive for holders of other currencies.[.N][USD/]
Organization of the Petroleum Exporting Countries Secretary-General Mohammed Barkindo on Monday reiterated the cartel’s commitment to a deal to cut output made in Algiers late September, which sought to boost prices after two years of oversupply.
OPEC has also sought cooperation from non-member producers, including Russia, but many analysts doubt its ability to coordinate a cut sufficient to balance the market.
“Market belief that OPEC can reach a credible deal has collapsed and prices are now $8 a barrel off the post-Algiers highs,” David Hufton, managing director of PVM Oil Associates, said in a note.
He cited record OPEC production in October, infighting between Iran and Saudi Arabia, as well as calls from Iraq for its own exemption from any cut.
Igor Sechin, the anti-OPEC head of Russia’s oil giant Rosneft , will be re-elected as head of the related state energy holding company Rosneftegaz, Interfax news agency reported.
Oil futures last week posted their biggest weekly percentage decline since January, with Brent and WTI falling to as low as $45.08 and $43.57, respectively.
(Additional reporting by Libby George in LONDON and Henning Gloystein in SINGAPORE; Editing by Marguerita Choy and Dale Hudson)