Compared with a second term of the Trump administration, a Biden presidency could be positive for U.S. oil and gas drillers because tougher regulations on hydraulic fracturing would likely reduce production, raising crude prices to levels of WTI $45-$55 in coming months after elections, Motilal Oswal Financial Services said on Monday.

The increase in crude prices is likely on account of the Biden pledging to end new drilling on public lands and move towards a carbon-free future. This would mean fresh production would be curbed resulting in falling oil inventories, pushing up the prices.