Oil rose around 2% on Wednesday after industry data showed crude inventories in the United States fell sharply, but trading was choppy as the outcome of the US presidential election remained unclear.
West Texas Intermediate was up 80 cents, or 2.1%, at $38.46 a barrel by 0436 GMT, after trading in a nearly $1 range. Brent crude was up 80 cents, or 2%, at $40.51, after trading between $39.85 and $40.70.
Oil prices fell more than 10% last week as global coronavirus cases soared and more restrictions on movement hit demand prospects. US oil has nearly recouped those losses in three days of gains this week in the run-up to the election.
“People with active positions in the market are trading very very nimbly because the (election) backdrop is a little uncertain,” said Virendra Chauhan, oil analyst at Energy Aspects in Singapore.
