Brent ended up 0.32% at $56.08 and WTI ended up 0.49% at $53.24.

Oil prices continued to rise modestly on Wednesday as Joe Biden was sworn in as the 46th president of the United States and the horizon cleared for demand.

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

The US barrel of WTI for the month of February, of which it is the last trading day, rose 0.49% or 26 cents to 53.24 dollars.

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

“Oil confirms momentum with WTI rebounding above $53. Market sentiment remains positive, with investors betting on demand picking up once vaccines defeat the virus, ending the lockdowns of recent months,” said Activtrades analyst Carlo Alberto De Casa.

INFRASTRUCTURE

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

The day before, Janet Yellen, future US Treasury Secretary, had called for “thinking big” in budgetary support for the economy, which had been well received by investors.

"It's 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.

"The contempt for fossil fuel records and worship on the altar of climate change will restrict US supply and drive prices higher," the analyst added.

Mr. Biden was due to sign an executive order on 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.

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

This $1.9 trillion stimulus package is banking on financial assistance for low-income American families, extended unemployment insurance benefits and state support.

The IEA's report released Tuesday on demand for black gold also reported rather optimistic comments for the strength of the recovery, even if it revised its forecast slightly downwards.

On Wednesday, after the close, investors will have estimates of American inventories from the American Petroleum Institute (API), the federation of professionals in the petroleum sector, which are expected to decline a little.

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