Energy Demand Boost Crude Oil Prices

This gains seen in oil prices is coming on the prevailing macro that shows a plunge in crude oil stockpiles at the world’s largest economy , pushing Brent crude prices back above the $40/barrel also the Pro fossil leader, President Trump was within striking distance of winning reelection triggered oil bulls to be on the driving seat.

At the early morning trading session in London, Brent crude 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, revealed U.S oil inventories dropped significantly by 8.01 million barrels for the week ending October 30.

Oil traders had earlier anticipated that there was going to be 600,000-barrel build amid soft demand prevailing across international markets sequel to the latest data report released by API, as the plunge in oil stockpiles supported oil prices helping them to gain more than 2% amid the strong U.S dollar.

Adding to positive bias triggering oil traders to go long, are reports coming from Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group led by the Saudis and Russians emphasizing on keeping the status quo coupled with broader sentiments, stating its unlikely they will consider easing oil production anytime soon.

However, the election gains recorded by President Trump for a clear election victory seem to be fading, as his rival Joe Biden puts up a good showing in key battleground states as he clinched on Arizona and Wisconsin, putting pressure on crude oil bulls to maintain their status quo around their rally on the sentiment oil prices would be under pressure with a Biden presidency in play.