Crude oil prices are picking up, buoyed by the confirmation of Joe Biden’s victory in the US presidential election, strengthening by over 2% at the start of the week as the risk appetite of global markets improves. At the time of writing, WTI crude oil is trading at around $38.18 per barrel.

WTI crude oil had lost around 4% in the previous trading session due to fears about weakness in demand amid the second wave of the pandemic and the overall risk-off sentiment prevailing in markets owing to the uncertainty surrounding the outcome of the elections in the US. However, oil traders are more confident after Biden’s victory in the hopes that he will soon announce a large fiscal stimulus package that could support demand for oil.

The renewed optimism, however, could soon fade as the dust settles as the oil markets will once again turn their focus back to the rising number of coronavirus cases around the world and its impact on oil demand. With more countries imposing lockdowns again, crude oil is expected to see demand decline, which could send its prices lower in the coming sessions.

The US has officially seen over 10 million cases so far, the first country to cross this level. Cases also continue to climb higher across Europe with the weather turning cooler.