Oil prices fell today pressured by rising COVID cases and further lockdown restrictions. Production in Libya is also swelling, reaching as much as 1.125 MM/bpd.

Oil prices traded down after initially trading up for the first half of the session as a larger than expected rise in inventories capped gains.

Crude prices continued to rise today as vaccine hopes continued to be supportive of prices and preliminary polling showed a drop in crude inventories.

When the European lockdowns were announced, I never saw sentiment in oil turn so negative so quickly,” said John Kilduff,

If you all of a sudden have a vaccine and we start opening up and life starts getting back to normal, we go from a perception of an oversupplied market to a very tight market next year and that could be very supportive for prices,”

Oil prices fell today with Brent settling back below $40/bbl again as the US presidential election still remains uncalled. New cases of COVID-19 continued to surge, with the US marking more than 100,000 new cases per day for multiple days straight.

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“Perhaps the biggest conclusion to be drawn at this stage is that there is only a small likelihood that existing oil & gas tax incentives will be removed in the U.S. – even if Biden emerges as the winner – given the narrow margin of victory and a probable Republic majority in the U.S. Senate,”

Oil prices rose today along with equities for a second straight day although traders are bracing for a wild ride ahead of US Election Day.

Oil prices steadied during today’s session, buoyed by US equities, after trading lower in the overnight session as we head into US Election Day tomorrow.