WTI gains 2.0% amid market optimism on US election results

WTI seesaws around the intraday high of $38.64, currently near $38.40, up 1.95% intraday, while heading into Monday’s European session. In doing so, the oil benchmark extends late Friday’s corrective recovery while parting ways from the previous two-day declines.

Although the coronavirus (COVID-19) resurgence challenges the outlook for energy demand, commodities benefit from the US dollar’s weakness. It should be noted that Reuters’ latest tally suggests over 10 million cases in the US as well as 30 million marks from Europe that suffer from the deadly virus. The pandemic has already pushed brake on economic activities in major EU states and the UK while America is still trying not to shut the door and shows readiness to form a COVID-19 taskforce team to tackle the problem. That said, the US dollar index (DXY) drops to the fresh low since September 01 while flashing 92.20 as a quote.

With Joe Biden’s victory in US presidential elections favoring more stimulus, risks are bid and the safe-havens stay mostly offered, like the USD, following the results.  Even so, Trump challenges the outcome to keep the Republicans in the power in the Senate.

Also propelling on the market risks could be upbeat figures of the US employment data, published last Friday.

However, speeches from energy ministers from Saudi Arabia, Russia, Iraq, Iran, UAE along with OPEC's Secretary-General keep the oil buyers cautious. The three-day-long virtual event is known as the Abu Dhabi International Exhibition & Conference (ADIPEC).

Technical analysis

The 200-day SMA level, currently around $37.30 offers immediate support to the black gold whereas 61.8% Fibonacci retracement of the commodity’s October-November downside, near $38.85 can guard nearby upside.