DTN Oil Update

Oil Down as US Election Jitters Offsets Gulf Geopolitics

SECAUCUS, N.J. (DTN) -- Crude oil futures settled lower Tuesday in volatile U.S. Election Day trading as market participants trimmed risk exposure despite renewed Gulf tensions after a U.S. strike on Iran's Qeshm Island.

Refined product futures, however, maintained their upside on supply tightness concerns.

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NYMEX WTI crude for December delivery fell $0.37, or 0.38%, to settle at $96.09 bbl, trading between a low of $93.59 bbl and an early morning peak of $98.82 bbl.

ICE Brent crude for January delivery moved down $1.17, or 1.12%, to close at $103.60 bbl, pulling back from an intraday high of $107.24 bbl while holding above a low of $100.80 bbl.

Traders spent the session managing risk around Congressional control outcomes and potential post-election changes in foreign policy strategy toward Tehran, as voters headed to the polls nationwide.

Tensions spiked early after news broke of the targeted U.S. military action on Qeshm Island -- a key strategic point in the Strait of Hormuz -- reigniting supply interruption fears along the critical shipping corridor.

Downstream contracts outperformed raw crude benchmarks through the closing bell. NYMEX ULSD for December delivery climbed $0.1090, or 2.47%, to settle at $4.5306 gallon, after topping out at $4.6010 gallon during intraday trade.

NYMEX RBOB gasoline for December delivery advanced $0.0354, or 1.22%, to settle at $2.9355 gallon, off a session high of $2.9831 gallon.

The U.S. Dollar Index settled unchanged at 101.624 against a basket of currencies.

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