Oil prices rose slightly, but remained near the lowest level since June 14, while market participants remained cautious amid expectations of plentiful supplies and weak demand.
Traders mostly ignored the news that US President Joe Biden had refused to participate in the elections. At the same time, analysts said that despite who wins the presidential election, it is unlikely that the new president's policies will greatly affect oil and gas operations.
As for the fundamentals, experts believe that any additional signs of weakening demand, combined with a resolution in Gaza, may lead to a further decline in oil prices. Weekly data on petroleum reserves in the United States will help assess current demand: a report from the American Petroleum Institute will be released later today, and official data from the Energy Information Administration will be presented tomorrow. If the data points to an increase in oil reserves last week, it will be a sign of declining demand.
Market participants also drew attention to the news that the Tuapse oil refinery, its biggest on the Black Sea, was damaged in a major Ukrainian drone attack that sparked a fire.
Overall, crude prices remain higher year-to-date, helped by OPEC+ supply cutbacks and expectations for lower US interest rates, peaks as soon as September.