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Oil edges down ahead of United States election, China NPC conference

Oil prices eased somewhat on Tuesday as markets braced for uncertainties from the U.S. governmental election, after increasing more than 2% in the past session as OPEC+ delayed plans to trek production in December and alleviated supply concerns.

Brent crude futures fell 15 cents, or 0.2%, to $ 74.93 a barrel by 0106 GMT while U.S. West Texas Intermediate crude was at $71.33 a barrel, down 14 cents, or 0.2%.

We are now in the calm before the storm, IG market expert Tony Sycamore stated, adding financiers are focusing on the outcome of the U.S. election and the National Individuals's Congress (NPC). meeting in China which might announce more stimulus measures.

Oil prices were supported by Sunday's statement from the. Company of the Petroleum Exporting Countries and their. allies, a group known as OPEC+, to press back a production hike. by a month from December as weak demand and rising non-OPEC. supply depress markets.

Still, OPEC oil output rebounded in October as Libya resumed. output, a Reuters study found, although an additional Iraqi effort. to satisfy its cuts promised to the larger OPEC+ alliance restricted the. gain.

More oil might originate from OPEC producer Iran as Tehran has. approved a strategy to increase output by 250,000 barrels each day,. the oil ministry's news site Shana reported on Monday.

In the U.S., a late season tropical storm forecasted to. magnify into a category 2 typhoon in the Gulf of Mexico this. week might reduce oil production by about 4 million barrels,. researchers stated.

Technically, crude oil needs to rebound above resistance at. $ 71.50/ 72.50 to negate the disadvantage threats, Sycamore said,. referring to WTI rates.

All of which recommends there will not be a scramble to chase it. higher in the short-term.

Ahead of U.S. weekly oil information on Wednesday, a preliminary. Reuters survey revealed on Monday that U.S. crude stockpiles likely. rose recently, while extract and fuel inventories fell.

(source: Reuters)