Oil prices surge on US Election Day

U.S. crude prices surged more than 3.5 percent on Tuesday, when Americans headed to vote for their next president, boosted by strong performance in the stock market and weaker dollar. Equities also rallied, sending positive message to commodities market, as incumbent President Barack Obama and Republican challenger Mitt Romney was neck and neck in the election. Although the broader market remains cautious, which can be easily seen in the light volume, some investors bet Obama seems to have a bigger chance for a victory, which means the U.S. Federal Reserve will remain accommodative under current quantitative easing policies. The surge in the market reminded investors of the astonishing surge on Wall Street four years ago when Americans were choosing a new president. Crude gained more than 10 percent and the blue-chip Dow Jones Industrial Average rallied 305 points on Nov. 4, 2008. Adding to the gains, the U.S. dollar weakened against most of its major counterparts Tuesday, pushing oil prices higher as cheaper dollar made the commodity more attractive to investors holding other currencies. U.S. gasoline futures soared nearly 8 percent Tuesday after some major refineries said it will take two to three weeks to resume operations. Light, sweet crude for December delivery went up 3.06 dollars, or 3.57 percent, to settle at 88.71 dollars a barrel on the New York Mercantile Exchange. Brent crude for December delivery rallied for a second straight day, rising 3.34 dollars, or 3.1 percent, to settle at 111.07 dollars a barrel.