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Brent crude tops $40

November 10, 2020 00:00:00

Maltese-flagged crude oil tanker Captain Paris sails in the Bosphorus as it is pictured from the July 15 Martyrs' Bridge, known as the Bosphorus Bridge in Istanbul, Turkey — Reuters

LONDON, Nov 09 (Reuters): Oil prices rose on Monday, with Brent topping $40 a barrel, after Joe Biden clinched the US presidency and buoyed risk appetite, offsetting worries about the impact on demand from the worsening coronavirus pandemic.

Brent crude LCOc1 had climbed 91 cents, or 2.3 per cent, to $40.36 a barrel by 0946 GMT, while US West Texas Intermediate crude CLc1 was at $38.04, up 90 cents, or 2.4 per cent. "Oil prices surged on Monday benefiting from a risk-on stance and a weaker US dollar driven by Joe Biden becoming president-elect," said Giovanni Staunovo, oil analyst for UBS.

Biden will convene a coronavirus task force on Monday to examine the No. 1 problem confronting him when he takes office in January.

Oil prices remain under pressure by renewed lockdown measures in Europe aimed at containing a rise in COVID-19 cases.

Meanwhile, the dollar weakened, hitting a 10-week low and boosting commodities priced in the greenback as they became more affordable for investors holding other currencies.

Key members of the Organisation of the Petroleum Exporting Countries (OPEC) are wary of Biden relaxing measures on Iran and Venezuela, which could mean an increase in oil production that would make it harder to balance supply with demand.

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