NEW YORK (Reuters) – Oil prices rose more than 2% on Wednesday after President Donald Trump falsely claimed victory in a tight U.S. election with millions of votes still to be counted and after data showed a large decline in U.S. crude inventories.
A victory by Trump is viewed as bullish for oil because of sanctions on Iran and his support for Saudi-led oil production cuts to support prices.
A contested result and prolonged uncertainty is seen as the most bearish outcome for oil and markets in general, while a win for Joe Biden would be seen as bearish to neutral because of his support for green policies and softer stance on Iran.
West Texas Intermediate was up 80 cents, or 2.1%, at $38.46 a barrel by 11:13 a.m. ET (1613 GMT.) Brent crude was up by 92 cents, or 2.3%, at $40.63 a barrel.
