Oil prices fall after gains on rosier outlook for global economy

A PetroChina worker inspects a pump jack at an oil field in Tacheng, Xinjiang Uighur Autonomous Region, China June 27, 2018. (Reuters photo)

SULAIMANI (ESTA) — Oil prices slipped on Tuesday after two straight sessions of gains as the passage of a U.S. infrastructure bill, Chinese exports and the global post-pandemic recovery lifted the outlook for fuel demand.

Brent crude was down 8 cents at $83.35 a barrel by 0546 GMT, after gaining 0.8% on Monday.

U.S. West Texas Intermediate (WTI) dropped 3 cents at $81.90 per barrel, also after a 0.8% gain the previous day.

U.S. President Joe Biden’s long-delayed $1 trillion infrastructure bill – which passed through Congress at the weekend – and better-than-expected Chinse exports helped paint a picture of a more expansive economy.

“The big unknow is whether economies can achieve growth amid the current high price environment, or potentially in an even higher price scenario,” Rystad Energy senior oil markets analyst Louise Dickson told Reuters.

JPMorgan Chase commodities analysts said global demand for oil in November was already nearly back to pre-pandemic levels of 100 million barrels per day (bpd), according to Reuters.

“More consumption growth lies in wait once travel begins in earnest and jet fuel demand picks up,” they added.

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