Oil prices stable after boost from US fuel demand

Oil prices stabilised on Thursday after rallying the previous day on stronger than expected U.S. fuel demand and reports that producer group OPEC+ could delay a planned output increase.

Traders are now awaiting the outcome of the U.S. presidential election on 5 November and whether ceasefires can be brokered in the Middle East.

The Brent and U.S. West Texas Intermediate (WTI) benchmarks made marginal gains, with Brent rising 7 cents to US$72.62 a barrel by 1009 GMT while WTI crude firmed by 17 cents to US$68.78.

Both contracts rose more than 2% on Wednesday.

U.S. gasoline stockpiles fell more than expected to a two-year low in the week ending 25 October, the Energy Information Administration said, while crude inventories registered a surprise drawdown as imports slipped.

“The surprise decline in U.S. gasoline stockpiles provided a buying opportunity as demand appeared stronger than anticipated,” said Fujitomi Securities analyst Toshitaka Tazawa.

Further support came from a potential delay to planned OPEC+ oil production increases from December by a month or more because of concern over soft oil demand and rising supply.

A decision could come as early as next week, Reuters reported. OPEC+ is scheduled to meet on 1 December to decide its next policy steps.

Elsewhere, manufacturing activity in China, the world’s biggest oil importer, expanded in October for the first time in six months, suggesting stimulus measures are having an effect.

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