These gains seen in oil prices come from the dominant macro that shows crude oil inventories plummeting in the world’s largest economy, pushing Brent prices above $ 40 / barrel also the fossil leader Pro, President Trump was on hand to win re-election unleashed oil bulls in the driver’s seat.
During the early morning London trading session, Brent futures prices broke above the $ 40.50 price levels and West Texas Intermediate prices also traded above its critical support level of $ 38.50 / barrel.
The latest data report seen from the American Petroleum Institute, found that US oil inventories had dropped significantly by 8.01 million barrels for the week ending Oct. 30.
Oil traders previously predicted there would be a build of 600,000 barrels amid weak demand prevailing in international markets following the latest data report released by API as falling oil inventories supported oil prices , helping them gain more than 2% in the middle. the strong US dollar.
Reports from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a Saudi-Russian-led group insisting on maintaining the status quo coupled with broader sentiments, add to the positive bias that prompts oil traders to go long. they will consider reducing oil production in the near future.
However, President Trump’s electoral gains for a clear election victory appear to be fading, as rival Joe Biden performs well in major battlefield states as he battles Arizona and Wisconsin. , putting pressure on crude oil bulls to maintain their status quo around their rally on oil price sentiment would be under pressure with a Biden presidency in play.