Oil gains on hopes US pandemic stimulus payments to spur fuel demandDecember 29, 2020
By Administration_ India
Oil rose on Tuesday, for the third time in four sessions, on expectations for rising fuel demand as the United States may expand their pandemic aid payments and a final Brexit deal is set to stabilize trade between Europe and the UK.
Brent crude futures climbed 36 cents, or 0.7%, to $51.22 a barrel, as of 0151 GMT and U.S. West Texas Intermediate crude futures added 34 cents, or 0.7%, to $47.96 a barrel.
Crude rose along with a gains in Asian shares, with Japanese stocks hitting a 29-year high, on rising investor risk appetite as the U.S. House of Representatives voted to raise pandemic relief payments to $2,000 from $600. The Senate still needs to vote on the measure.
Forecasts for tightening U.S. crude oil stocks also added support to prices.
Still, concerns over coronavirus lockdowns are capping gains.
A new variant of the virus in the United Kingdom has led to the reimposition of movement restrictions, hitting near-term demand and weighing on prices, while hospitalizations and infections have surged in parts of Europe and Africa.
A Jan. 4 meeting of the Organization of the Petroleum Exporting Countries and allies including Russia, a group known as OPEC+, also looms over the market.
OPEC+ is tapering record oil output cuts made this year to support the market. The group is set to boost output by 500,000 barrels per day (bpd) in January and Russia supports another increase of the same amount in February.