Brent crude futures edged up on Tuesday as optimism that federal government stimulus will buoy international growth that is economic oil demand trumped concerns that renewed COVID-19 pandemic lockdowns globally could cool fuel consumption.
Brent crude futures for March rose 17 cents, or 0.3%, to $54.92 a barrel by 0150 GMT after slipping 35 cents in the session that is previous.
U.S. West Texas Intermediate crude was at $52.25 a barrel, down 11 cents, or 0.2%. There clearly was no settlement on Monday as U.S. areas were closed for the vacation that is public. Front-month WTI futures expire on Wednesday.
Investors are upbeat about need in Asia, the entire world’s top crude oil importer, after information released on Monday revealed its refinery production rose 3% up to a record that is new 2020. China was also the sole major economy on the planet in order to avoid a contraction this past year as much countries struggled to support the pandemic that is COVID-19.
“Yesterday’s information out of Asia was a positive for oil costs,” Michael McCarthy, main market strategist at CMC Markets in Sydney said. Brent crude futures edged up on Tuesday.
Investors are watching out for U.S. President-elect Biden’s inauguration message on for details on the country’s $1.9 trillion aid package.
Oil costs have also been supported by Saudi Arabia’s extra supply cuts in the next 8 weeks that are likely to draw straight down worldwide inventories by 1.1 million barrels per day in the quarter that is first ANZ analysts said.
Concerns about rising COVID-19 full cases globally and renewed lockdowns weighing down gas demand kept a lid on oil rates.
ANZ analysts flagged issues about dropping fuel sales in India in from December and rising COVID-19 cases in China and Japan that could dampen oil demand.
“In European countries and also the U.S., the rollout that is slow of can be raising concerns that the rebound in demand will continue to be evasive,” the bank said.