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GulfToday Report

Oil fell on Wednesday as President Donald Trump declared himself victorious in the US election, although millions of votes are yet to be counted.

West Texas Intermediate dipped by 15 cents, or 0.4%, at $37.51 a barrel by 07:55 GMT, due to choppy trade for most of the Asian session. Brent crude was down by 8 cents, or 0.2%, at $39.63, after trading between $39.85 and $40.80.

As the world is dealing with second wave of coronavirus, the oil prices fell by 10% last week. However, those losses have been recovered after three days gains this week. 

Jonathan Barratt, chief investment officer at Probis Group in Sydney said oil is running on a bit of thin air, sense will prevail and prices will come back to the median. 

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According to American Petroleum Institute (API), crude stockpiles fell by 8 million barrels to about 487 million.

As different countries in Europe put up strict restrictions to curb the second wave of the virus, oil price gains could be affected.

The Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, a grouping known as OPEC+ will be reducing the amount of barrels per day from 7.7 million (bpd) by around 2 million bpd from January.

Sources said OPEC and Russia were considering bigger production cuts next year to support prices.