Oil prices rose by more than 2% today, Wednesday, after President Donald Trump claimed victory in the very close US elections despite millions of votes not being counted and after data that showed a significant drop in US crude stocks.
Trump’s victory is seen as supportive of oil due to sanctions on Iran and his support for the Saudi-led OPEC oil cuts to support prices.West Texas Intermediate crude rose 80 cents, or 2.1%, to $ 38.46 a barrel by 16:13 GMT. Brent crude increased 92 cents, or 2.3%, to $ 40.63.
Both benchmark crude oil prices extended their gains to their highest levels in the session after data showed that crude inventories in the United States fell by 8 million barrels last week, as Hurricane Zeta caused a decline in production in the Gulf of Mexico during that period.
Oil prices were also supported by the possibility of studying OPEC producers and Russia to postpone a planned increase in OPEC + oil production from January as the second wave of the Corona virus undermined the recovery of fuel demand.
Earlier, the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, within the framework of the “OPEC +” group, agreed to reduce the volume of cuts of 7.7 million barrels per day by about two million barrels per day as of January.
Further lockdown measures may limit oil’s gains. Norway and Hungary have tightened restrictions related to the Corona virus, after Britain, France and others.