Oil Rebounds Before U.S. Election as Earthquake Shakes Cushing

Futures rose as much as 2.1 percent in New York as equities climbed after the Federal Bureau of Investigation said it maintains the view that Hillary Clinton’s handling of her e-mails wasn’t a crime. A magnitude 5 earthquake struck near Cushing, prompting some pipeline operators to shut operations at the site as a precaution. Russia, the world’s biggest energy producer, is “on board” with an OPEC agreement to limit crude oil production to help re-balance the market, according to OPEC Secretary General Mohammed Barkindo.

West Texas Intermediate for December delivery rose as much as 92 cents to $44.99 a barrel on the New York Mercantile Exchange, and was at $44.74 at 12:46 p.m. in London. The contract slid 59 cents to $44.07 on Friday. Total volume traded was in line with the 100-day average. Prices slipped 9.5 percent last week, the most since the period ending Jan. 15.

Brent for January settlement rose as much as 80 cents, or 1.8 percent, to $46.38 a barrel on the London-based ICE Futures Europe exchange. Prices declined 8.3 percent last week, the most since January. The global benchmark traded at an 80-cent premium to January WTI.

The tremor occurred 2 kilometers (1.2 miles) west of Cushing at a depth of 5 kilometers, the U.S. Geological Survey said on its website. Magellan Midstream Partners LP, a pipeline operator, is working through a controlled shutdown in the area, spokesman Bruce Heine said in an e-mailed statement. There was no damage to its assets and the company expects to resume operations on Monday, he said.

http://www.bloomberg.com/news/articles/2016-11-07/oil-rebounds-before-u-s-election-amid-opec-deal-uncertainty

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