Oil prices climbed on Tuesday as optimism that government stimulus will eventually lift global economic growth and oil demand trumped concerns that renewed COVID-19 pandemic lockdowns globally are cooling fuel consumption.
For all the latest headlines follow our Google News channel online or via the app
Brent crude futures for March rose 72 cents to $55.47 a barrel by 1152 GMT after slipping 35 cents in the previous session.
“The perception that any retracement will be quick as confidence in economic and oil demand recovery is unlikely to fade away,” said PVM analysts in a note.
US West Texas Intermediate crude was at $52.65 a barrel, up 29 cents. There was no settlement on Monday as US markets were closed for a public holiday. Front-month February WTI futures expire on Wednesday.
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 percent to a new record in 2020.
China also avoided an economic contraction last year.
Investors are watching out for US oil inventory data from the industry association API, due on Wednesday, the same day US President-elect Biden’s inauguration speech will likely give details on the country’s $1.9 trillion aid package.
Read more: Worldwide coronavirus death toll hits 2,041,289: AFP COVID-19 tally
The International Energy Agency cut its outlook for oil demand in 2021, but pointed to a recovery in demand in the second half of the year to an annual average of 96.6 million barrels per day.
“Border closures, social distancing measures and shutdowns...will continue to constrain fuel demand until vaccines are more widely distributed, most likely only by the second half of the year,” it said in its monthly report.
-
Worldwide coronavirus death toll hits 2,041,289: AFP COVID-19 tally
The novel coronavirus has killed at least 2,041,289 people since the outbreak emerged in China in December 2019, according to a tally from official ... Coronavirus -
Goldman Sachs profit more than doubles on underwriting IPOs, global trading boost
Goldman Sachs Group Inc dwarfed Wall Street estimates as its fourth-quarter profit more than doubled, powered by another blowout performance at its ... Economy -
China economy grows in 2020, only major economy to rebound from coronavirus
China eked out 2.3 percent economic growth in 2020, likely becoming the only major economy to expand as shops and factories reopened relatively early ... Economy -
European stocks turn defensive as lockdown worries resurface
European stocks inched higher on Tuesday, as possible extension of German lockdowns drew investors into defensive sectors such as healthcare and ... Economy -
Most Europeans plan to fly less, eat less meat to fight climate change: EU poll
A majority of European citizens intend to fly less and already eat less meat to help fight climate change, according to a survey published by the ... Healthy Living