Oil prices rose, with Brent topping $40 a barrel, after Joe Biden clinched the U.S. presidency and buoyed risk appetite, offsetting worries about the impact on demand from the worsening coronavirus pandemic.
Brent crude had climbed 91 cents, or 2.3%, to $40.36 a barrel by 0946 GMT, while U.S. West Texas Intermediate crude was at $38.04, up 90 cents, or 2.4%.
"Oil prices surged on Monday benefiting from a risk-on stance and a weaker U.S. 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.
Key members of the Organization 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.
