Oil rally affected by expectations of US stimulus and tight supply

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Oil rally affected by expectations of US stimulus and tight supply

Reuters

Oil prices rise in anticipation of a US stimulus and a tight supply under Biden

Oil prices rose on Wednesday due to expectations that the administration of US President Joe Biden will launch a huge economic stimulus to ease the repercussions of Corona, which will boost fuel demand.

Brent crude rose 18 cents, to be settled at $ 56.08 a barrel.

U.S. West Texas Intermediate crude closed at $ 53.24 a barrel, up 26 cents.

Biden is expected to take measures to rein in the American oil industry, including a plan to return to the Paris climate agreement, cancel the license for the “Keystone XL” oil pipeline, and stop drilling in the Arctic.

And Janet Yellen, a candidate for the US Treasury Secretary, has urged lawmakers to take “big action” regarding pandemic relief spending, which boosted oil prices.

“There are renewed hopes for stimulus,” said John Kilduff, partner at Again Capital in New York. “The sentiment in the markets is generally good. There is a feeling of progress and improved demand.”

Source: Reuters





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