Oil prices gained more than 2% on Wednesday following data showing a sharp drop in US crude oil stocks and as investors awaited the result of the US presidential election. Last week oil prices fell by more than 10% as resurging COVID-19 cases hurt fuel demand prospects. US crude prices have regained those losses in the three days of this week on the back of the tumultuous presidential vote. US presidential candidates have different sets of policies that would likely affect the oil market. Analysts said that Biden victory would weigh on prices in the medium term.
The American Petroleum Institute reported that US crude oil inventories stood at 487 million barrels last week, a fall of 8 million barrels from the previous week, contrasting to analysts’ estimates of an 890,000-barrel build. Meanwhile, gasoline stockpiles are reported to have risen in the same week. Adding support to the prices, Algeria supported to keep the current OPEC+ supply curbs in January.
However, reimposed lockdown measures capped the gain. Italy, Norway, Hungary, the UK, France, and other countries have tightened COVID-19 restrictions again. US WTI CLc1 gained $1.01 (2.7%) to $38.67/barrel by 1138 GMT on Tuesday, while Brent crude LCOc1 gained 3% on Tuesday.
