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Crude rebounds on bottom fishing, electoral uncertainty weighs

Published 11/04/2012, 08:24 PM
Updated 11/04/2012, 08:26 PM
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Investing.com - Crude oil futures rebounded in Asian trading on Monday, regaining some strength after falling on reports that U.S. refineries weathered Superstorm Sandy and have begun to come online.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at USD84.92 a barrel on Monday, up 0.08%, off from a session high of USD84.98 and up from an earlier session low of USD84.73.

Seven refineries carrying a combined capacity of 1.29 million barrels a day had shut or reduced operations because of Sandy in recent days, though their eventual return to operations began to add oil derivatives to a market that is already awash in supply, which sent oil prices dropping last week.

Elsewhere, U.S. government temporarily waived the Jones Act, a move that allowed foreign tankers to haul fuels from Gulf Coast to refineries in the storm-stricken northeastern U.S.

The Jones Act requires ships moving goods from port to port within the U.S. to be domestically built and crewed.

The news sent oil falling though prices regained composure on Monday after bargain hunters felt the commodity had fallen enough, especially since U.S. refining capacity has yet to fully reach pre-storm levels.

Commodities traded lower on a stronger dollar ahead of Tuesday's presidential elections in the U.S.

Polls show that President Barack Obama and his challenger, Republican Mitt Romney, are running neck and neck, with no clear winner coming down to the wire, which kept many investors seeking safe-harbor asset classes.

On the ICE Futures Exchange, Brent oil futures for December delivery were down 0.16% and trading at USD105.58 a barrel, up USD20.66 from its U.S. counterpart.







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