Brent Crude Exceeds $ 40, After Increased Risk Appetite With Biden’s Victory

Oil prices gained more than 2% on Monday, November 9, while Brent crude futures rose above $ 40 a barrel, after Joe Biden won the US presidency and boosted risk appetite, offsetting concerns about the impact of the worsening coronavirus pandemic on demand.

Brent crude futures for January delivery rose $ 1.06, or 2.7%, to $ 40.51 a barrel by 04:53 GMT, and US West Texas Intermediate crude for December delivery reached $ 38.21 a barrel, up 1.07% or 2.9%.

Oil is recovering from a 4% drop on Friday, rising with the rest of the financial markets after Biden appeared to be the winner in the US election race on Sunday. Meanwhile, the dollar weakened, which boosted the primary commodities denominated in the US currency as they became less expensive for holders of other currencies.

Key members of the Organization of the Petroleum Exporting Countries (OPEC) are concerned about Biden easing measures against Iran or Venezuela in the coming years, which could mean increased production, which would make it more difficult to balance supply with demand.

OPEC and its allies, what is known as the OPEC + group, reduce production by about 7.7 million barrels per day to balance global oil markets.

China, the world’s largest importer of crude, recorded a 12% decrease in October imports compared with September.