SULAIMANI (ESTA) — Oil prices rose on Tuesday as optimism that government stimulus will buoy global economic growth and oil demand trumped concerns that renewed coronavirus pandemic lockdowns could fuel consumption.
Brent crude futures for March rose 40 cents to $55.15 a barrel by 0724 after slipping 35 cents in the previous session. U.S. West Texas Intermediate crude was at $52.40 a barrel, up 04 cents.
There was no settlement on Monday as U.S. markets were closed for a public holiday, according to Reuters.
Investors are upbeat about demand in China, the world’s top crude oil importer, after data released on Monday showed its refinery output rose 3% to a new record in 2020, Reuters reported.
“Yesterday’s data out of China was a positive for oil prices,” Reuters cited Michael McCarthy, chief market strategist at CMC Markets in Sydney, as saying.
Investors are also watching out for U.S. President-elect Joe Biden’s inauguration speech on Wednesday for details on the country’s $1.9 trillion aid package.
ANZ analysts said oil prices had also been supported by Saudi Arabia’s additional supply cuts in the next two months which are expected to draw down global inventories by 1.1 million barrels per day in the first quarter, Reuters reported.
Concerns about rising COVID-19 cases globally and renewed lockdowns weighing down fuel demand kept a lid on oil prices.
