Oil prices rose robustly in midday trading as investors after Americans decided that Donald Trump, who supports the growth of oil & gas production through reduced regulation, will be the 45th President of the United States.
Benchmark WTI crude erased the losses sustained during the tumultuous election nigh, rising 65 cents, 1.45% at $46.10.
The rising oil prices energized the energy sector during the midday trading session, even after the U.S. Energy Information Administration reported a rise in crude oil inventories. Stockpiles increased by 2.4 million barrels for the week ending Nov. 4, keeping inventories, which now stand at 485 million barrels, at the "upper limit of the average range for this time of year."
Refinery inputs averaged approximately 15.8 million barrels per day, an increase of 369,000 barrels a day more than the prior week. Refineries also operated at 87.1% of the operable capacity.
As for gasoline production, it increased to an average of about 10.5 million barrels per day. Yet, inventories decreased by 2.8 million barrels last week and are still "well above the upper limit of the average range."
Distillate fuel production also rose last week to 4.8 million barrels per day as inventories declined by 1.9 million barrels.
Even though oil prices rebounded, the stock market was in sell-off mode. Strategists at Deutsche Bank think the market will-off "will be short lived," and that the Republican sweep is positive for the broad market. However, they also say one sector could suffer from this election: Energy.