Oil rebounds due to OPEC uncertainty and US elections

The Dollar Business Bureau 

The prices of oil rebounded after two months of losing streak that sprung due to uncertainty over an OPEC deal amidst growing US crude stockpiles and the looming American election. All these kept the markets volatile.

US inventories showed an increase last week and OPEC members claimed exemption from an agreement to limit supplies boosted the production figures in the month of October. According to the Hyundai Futures Corp “while the gain in stockpiles was a huge surprise in the market, prices are recovering in the oil market after a continuous decline of 8.8%  the last four sessions.” Oil volatility is near the highest level in more than a month, but investors are cautious  due to the ongoing race to the White House. 

Oil has reduced from nearly $50 a barrel due to a failure by the OPEC countries to reach a consensus on country quotas as part of the deal to limit output production. The US Energy Information Administration is quoted saying, “crude inventories rose 14.4 million barrels for the week ended Oct. 28, far more than the 1.0 billion barrels analysts had expected. It was the biggest weekly rise in US crude stocks, passing a 2012 record.” 

Crude output by the Organization of the Petroleum Exporting Countries likely reached a record high of 33.82 million barrels per day (bpd) in October, a survey on Monday showed. The group meets Nov. 30, hoping to finalize output cuts.