Brent Crude Edges Up As Optimism Over Economy Trumps Demand Concerns

SINGAPORE: Brent crude futures edged up on Tuesday as optimism that authorities stimulus will buoy international financial progress and oil demand trumped issues that renewed COVID-19 pandemic lockdowns globally might cool gas consumption.

Brent crude futures for March rose 17 cents, or 0.3%, to $54.92 a barrel by 0150 GMT after slipping 35 cents within the earlier session.

U.S. West Texas Intermediate crude was at $52.25 a barrel, down 11 cents, or 0.2%. There was no settlement on Monday as U.S. markets have been closed for a public vacation. Entrance-month February WTI futures expire on Wednesday.

Buyers are upbeat about demand in China, the world’s prime crude oil importer, after information launched on Monday confirmed its refinery output rose 3% to a brand new file in 2020. China was additionally the one main financial system on this planet to keep away from a contraction final 12 months as many countries struggled to include the COVID-19 pandemic.

“Yesterday’s information out of China was a optimistic for oil costs,” Michael McCarthy, chief market strategist at CMC Markets in Sydney stated.

Buyers are watching out for U.S. President-elect Biden’s inauguration speech on Wednesday for particulars on the nation’s $1.9 trillion help bundle.

Oil costs have additionally been supported by Saudi Arabia’s extra provide cuts within the subsequent two months that are anticipated to attract down international inventories by 1.1 million barrels per day within the first quarter, ANZ analysts stated.

Concerns about rising COVID-19 instances globally and renewed lockdowns weighing down gas demand stored a lid on oil costs.

ANZ analysts flagged issues about falling gas gross sales in India in January from December and rising COVID-19 instances in China and Japan that might dampen oil demand.

“In Europe and the U.S., the sluggish rollout of vaccines can also be elevating issues {that a} rebound in demand will stay elusive,” the financial institution stated.

Disclaimer: This put up has been auto-published from an company feed with none modifications to the textual content and has not been reviewed by an editor

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