Oil  prices continued to have, modestly, the wind in their sails on Wednesday as Joe Biden was sworn in as the 46th president of the United States and the horizon clears for demand.

The barrel of North Sea Brent for delivery in March gained 0.32% or 18 cents from Tuesday's close at $56.08.

The U.S. barrel of WTI for the month of February, which is the last day of trading, rose 0.49% or 26 cents to $53.24.

The prices of the two benchmark contracts had earlier approached in London their last records since the end of February 2020 affected last Wednesday (respectively $ 57.42 and $ 53.93 per barrel). They moderated their rise in session in New York.

"Oil  confirms its momentum with the rebound of WTI above $53. Market sentiment remains positive, with investors betting on the recovery in demand once vaccines defeat the virus, ending the lockdowns of recent months," said Carlo Alberto De Casa, an analyst at Activtrades.

- Infrastructure -

Crude oil prices also rose in the wake of Joe Biden's inauguration ceremony. With the arrival of the Democratic president, comes the promise of massive budget aid, viewed favorably by the markets.

The day before, Janet Yellen, future US Treasury Secretary, had called for "thinking big" in fiscal support for the economy, which was welcomed by investors.

"This is a new day for America and for the crude market, the outlook under his administration is very optimistic," said Phil Flynn of Price Futures Group.

"Contempt for fossil fuel issues and adoration on the altar of climate change will restrict U.S. supply and lead to higher prices," the analyst added.

Biden was expected to sign an executive order Wednesday afternoon blocking the controversial Keystone XL pipeline project between Canada and the United States.

For Christopher Page of Rystad Energy, the arrival of the Biden administration will support prices for other reasons.

It forecasts an increase in demand for U.S. oil of about 350,000 barrels per day, "due to the expected short-term economic recovery and its infrastructure plan."

The $1.9 trillion stimulus package includes financial assistance to low-income American families, extended unemployment insurance benefits and state support.

The IEA's report released Tuesday on oil demand also showed rather optimistic comments for the strength of the recovery, although it revised its forecast slightly downwards.

On Wednesday, after the close, investors will have U.S. inventory estimates from the American Petroleum Institute (API), the federation of oil professionals, which are expected to decline a little.

The more official weekly report on U.S. oil inventories compiled by the U.S. Energy Information Agency (EIA) will be released on Friday.