Oil prices edge higher with Wall St as the U.S. votes

Tue Nov 8, 2016 2:00pm EST
 
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By Scott DiSavino

NEW YORK (Reuters) - Oil prices edged higher on Tuesday after trading either side of unchanged all morning, keeping crude in line with a small increase in U.S. stock markets as voters headed to the polls to elect the next president of the United States.

The most recent polls have put Democrat Hillary Clinton ahead of Republican rival Donald Trump in Tuesday's election. Most investors believe a Clinton victory would result in greater certainty and stability in financial markets.

Brent futures rose 15 cents, or 0.3 percent, to $46.30 a barrel by 1:38 p.m. EST (1838 GMT). U.S. crude rose 34 cents, or 0.8 percent, to $45.23 per barrel.

Brent crude's premium to the U.S. West Texas Intermediate (WTI) futures contract declined to its lowest in almost five months.

The Organization of the Petroleum Exporting Countries forecast demand for its oil will rise in the next three years, suggesting its 2014 decision to let prices fall to curb costlier rival supplies is delivering higher market share. [OPEC/M]

The group meets on Nov. 30 and has pledged to reach a deal on cutting output to try to reduce a two-year-old global surplus.

But several member states have asked to be exempt from any deal. Along with questions over the likelihood of non-OPEC rival Russia joining in, this has created doubt about OPEC's ability to deliver a meaningful cut.

Mohammed Barkindo, secretary-general of OPEC, warned that failure to implement the agreement reached in Algiers in September to cut output would bring negative consequences to an already fragile oil industry.   Continued...

 
A worker takes oil samples from a well at the Gazpromneft-owned Yuzhno-Priobskoye oil field outside the West Siberian city of Khanty-Mansiysk, Russia, January 28, 2016. REUTERS/Sergei Karpukhin/File Photo