Black commodity trading continued to rise higher on Wednesday after being backed by strong US crude oil supply data as markets were plagued by uncertainty over presidential election results.
Data published by the American Petroleum Institute (API) shows U.S. crude oil inventories fell by 8 million barrels last week, exceeding expectations for an increase of 890,000 barrels.
This encouraging figure to some extent gives room for the crude oil market to breathe after being pressured by concerns over the bleak prospects of global demand due to the implementation of new sanctions measures in Europe and several other countries.
Apart from that, also supporting the price of black gold today is OPEC members, namely Algeria who expressed their support to postpone the easing plan in cutting crude oil production.
In fact, there are sources who say OPEC and Russia are considering larger production cuts next year to support prices.
The benchmark Brent crude futures traded up 2.1% at $ 40.57 a barrel, while the US WTI was up 2.4% at $ 38.58 a barrel.
The main focus of the market is now on the development of election results that saw Donald Trump win most of the southern and Midwest, while Joe Biden is seen dominating most of the northeast states so far.
