Oil rose around 2% on Wednesday, the morning after an historic U.S. presidential election, and after industry data showed crude inventories in the United States fell sharply, but trading was choppy as the outcome of the vote remained unclear.
West Texas Intermediate was up 90 cents, or 2.4%, at $38.57 U.S. a barrel, after trading in a nearly $1 range. Brent crude was up 98 cents, or 2.5%, at $40.69 U.S., after trading between $39.85 and $40.70.
Oil prices dived more than 10% last week as global coronavirus cases soared and more restrictions on movement hit demand prospects. U.S. oil has nearly recouped those losses in three days of gains this week in the run-up to the election.
Crude oil stocks south of the line fell sharply last week while gasoline inventories rose, according to industry group the American Petroleum Institute showed on Tuesday.
Crude stockpiles fell by eight million barrels last week to about 487 million barrels, the API showed on Tuesday.
That contrasted with analysts’ expectations in a poll for an increase of 890,000 barrels.
Supporting prices, Algeria, one of the members of the Organization of the Petroleum Exporting Countries, backed deferring a planned increase in OPEC+ oil output from January and Russia’s energy minister raised the prospect with the country’s oil producers.
OPEC and allies led by Russia, a grouping known as OPEC+, are set to reduce cuts of 7.7 million barrels per day (bpd) by around two million bpd from January.
Sources said OPEC and Russia are considering bigger production reductions next year to support prices.
