Oil prices ticked up 1% on Thursday as investors considered stronger U.S. fuel demand and reports that producer group OPEC+ could delay a planned output increase, in the few remaining days leading up to the U.S. election next week.
Brent futures rose by 75 cents, or 1%, to $73.30 a barrel by 11:52 a.m. EDT. WTI futures were up $1.01, or 1.47%, at $69.62.
"The market is trying to figure out the impact of a Harris or Trump administration on oil production, sanctions and prices," said Andrew Lipow, president of Lipow Oil Associates.
Bar any significant market-moving events in the Middle East over the next five days, the market is likely to bide its time ahead of the election result before making any big moves, Lipow added.
Meanwhile, U.S. gasoline stockpiles fell more than expected to a two-year low in the week ending Oct. 25, the Energy Information Administration said, while crude inventories registered a surprise drawdown as imports slipped. [EIA/S]
"An unexpected drawdown in U.S. crude and product stocks against projected builds provided some uplift for Brent futures this week," Rystad Energy's global head of commodity markets for oil, Mukesh Sahdev said in a note on Thursday.
Though the week did begin with a large sell off, after Israel showed some restraint in its retaliatory attacks on Iran over the weekend, Sahdev added.
Further supporting oil prices on Thursday, OPEC+ could delay planned 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 Dec. 1 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.
Brent and WTI futures had fallen by more than 6% on Monday on reduced risk of Iran's direct involvement in the wider Middle East conflict and negotiators are now pushing for ceasefires in Lebanon and Gaza.
"Several international events have converged at the turn of the month that could see oil markets in for a bumpy ride in early November," said Rystad Energy's Sahdev said, citing the U.S. election, continually weak Chinese demand outlook, OPEC+ uncertainty and ongoing war in the Middle East.
