Oil: good two-way trade ahead of US election results, how will oil be affected?

WTI has been a good two-way trade overnight, rallying from 44.23 to 44.98 and then finishing the day in the US session with just a slight gain.

The day was choppy for oil traders while we await the US elections and less liquidity making for a chop and slippage and at the same time, there has been a continuation of the skepticism over OPEC's plan to curb output hampering gains. 

In respect of data, the API numbers, WTI supply came in on a bigger than expected build of 4.4m bbls of crude. Significantly, however, the price bounced off the 200 dma at 43.72 at the start of this week and regained the $44 handle and maintains the bullish trend until $40 is broken to the downside as the psychological support level. The elections could prove to be problematic to bulls should Clinton win considering her alternative energy bias and policies while a Trump victory could be bad for the dollar and bullish for oil.