Oil prices stabilized on Tuesday after a decline over the past two sessions, with caution prevailing among investors amid expectations of abundant supplies and weak demand. The market overlooked disruptions caused by the U.S. presidential election campaign. September Brent crude futures rose by two cents to $82.42 per barrel as of 0320 GMT. Meanwhile, West Texas Intermediate (WTI) crude for September dropped by two cents to $78.38 per barrel.
Most traders ignored U.S. President Joe Biden's decision on Sunday to withdraw from the presidential race and nominate Vice President Kamala Harris. Citi analysts ruled out that either Republican candidate Donald Trump or Harris would promote policies that would significantly impact oil and gas operations.
The market focused on supply and demand, which Morgan Stanley analysts predict is likely to balance out by the fourth quarter and rise to a surplus by next year, potentially bringing Brent prices down to the range of $70 to $80 per barrel.
The American Petroleum Institute is set to release its estimate of last week's oil inventories later on Tuesday, while the official data from the U.S. government will be published on Wednesday. A preliminary survey by Reuters of six analysts estimated a decrease of 2.5 million barrels in U.S. crude stocks for the week ending July 19, while gasoline inventories are expected to decline by 500,000 barrels.
