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SINGAPORE (Reuters) – Brent futures edged higher on Tuesday as optimism that government stimulus measures will support global economic growth and demand for oil outweighs fears that the renewal of Lockdowns of the COVID-19 pandemic around the world could reduce fuel consumption.
Brent futures for March rose 17 cents, or 0.3%, to $ 54.92 a barrel at 1:50 a.m. GMT after slipping 35 cents in the previous session.
US West Texas Intermediate crude was $ 52.25 a barrel, down 11 cents, or 0.2%. There was no settlement on Monday as US markets were closed for a holiday. The WTI futures contracts for the month of early February expire on Wednesday.
Investors are optimistic about demand in China, the world’s largest importer of crude oil, after data released on Monday showed its refineries’ output rose 3% to a new record in 2020. China was also the The world’s only major economy to avoid a contraction last year as many countries struggled to contain the COVID-19 pandemic.
“Yesterday’s data from China was positive for oil prices,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney.
Investors are watching US President-elect Biden’s inaugural address on Wednesday for details of the country’s $ 1.9 trillion aid package.
Oil prices have also been supported by further reductions in Saudi Arabia’s supply over the next two months, which are expected to reduce global inventories by 1.1 million barrels per day in the first quarter, the officials said. ANZ analysts.
Concerns over rising COVID-19 cases around the world and renewed lockdowns weighing on fuel demand have held back oil prices.
ANZ analysts have reported concerns about declining fuel sales in India in January from December and rising COVID-19 cases in China and Japan that could dampen demand for oil.
“In Europe and the United States, the slow roll-out of vaccines also raises concerns that a rebound in demand remains elusive,” the bank said.
Reporting by Florence Tan; edited by Richard Pullin
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