Oil prices were stable early on Tuesday after posting strong
gains the previous day, with investors piling money into financial markets in
expectation that Democrat Hillary Clinton would win the US presidential
election. US West Texas Intermediate (WTI) crude futures were down 1 cent at
USD 44.88 per barrel at 0038 GMT. The contract had gained almost 1.9 percent
the previous session on polls putting Clinton ahead of her Republican
competitor Donald Trump for Tuesday's election.
"Oil appears to have coat-tailed most other commodities
higher, as part of a Clinton-led, broad based, risk asset rally," said
Jeffrey Halley, senior market analyst at brokerage OANDA in Singapore.
"Crude oil prices bounced off key support levels as
investors piled back into the energy sector," ANZ bank said on Tuesday.
In physical oil markets, US pipeline companies with
operations at the heart of the country's commercial oil industry at Cushing,
Oklahoma, restarted on Monday after a 5.0-magnitude earthquake late on Sunday
triggered safety shutdowns.
However, traders said that financial crude markets were
capped by lingering doubts over the ability of oil producers to agree on a
planned output cut in order to prop up a market which has been dogged by two
years of oversupply.
The chief executive of US oil giant Exxon Mobil , Rex
Tillerson said on Monday that global oil supplies have exceeded demand by 1 to
1 million barrels per day since the start of 2015.
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