Brent Crude Tops $40 After Biden Win Lifts Risk-Takers

Oil prices gained more than 2% on Monday, with Brent futures rising above $40 a barrel, after Joe Biden clinched the US presidency and buoyed risk appetites, offsetting worries about the impact on demand from a worsening coronavirus pandemic.
Brent crude futures for January climbed $1.06, or 2.7%, to $40.51 a barrel, and US West Texas Intermediate crude for December was at $38.21 a barrel, up $1.07, or 2.9%, CNBC reported.
Oil recovered from a 4% decline on Friday, rising along with other financial markets after Biden emerged as the winner in the US presidential race on Sunday. Meanwhile, the dollar weakened, boosting commodities priced in the greenback as they became more affordable for investors holding other currencies.
US president-elect Biden and his team are working on tackling the worsening health crisis. The United States became the first nation worldwide since the pandemic began to surpass 10 million Covid-19 infections.
US oil production is set to climb as producers are tapping into a backlog of drilled wells left uncompleted to boost output. The number of operating oil and gas rigs in the United States rose for an eighth week last week.
Key members of the Organization of the Petroleum Exporting Countries are wary of Biden relaxing measures on either Iran or Venezuela in years to come, which could mean an increase in production that would make it harder to balance supply with demand.