Black gold erased some of its gains in the previous session with the benchmark US crude oil falling below $ 39 a barrel which was affected by the strengthening of the US dollar as markets awaited election results.
Brent oil futures and WTI United States recorded a 1.5% decline to $ 40.62 a barrel and $ 38.56 a barrel respectively in the Asian session.
Both benchmarks previously recorded an increase after witnessing a sharp drop in US crude oil supply which fell more than 10 times higher than expected by the market following the threat of hurricane Zeta forcing energy companies to close oil facilities and stop production.
The latest data from the Energy Information Administration (EIA) shows a drop of 8 million barrels in U.S. oil inventories last week, beating market expectations for a 900,000 barrel increase.
However, not all US supply data shows a positive reading. This is because the petrol supply is recorded to increase by 1.5 million barrels, missing from expectations to decrease.
Meanwhile, in the latest election development, Democrat Joe Biden said on Wednesday that he is now heading for victory over President Donald Trump after winning important Midwestern states in Wisconsin and Michigan, while Trump is calling for a recount.
