SINGAPORE (Reuters) – Oil prices gained more ground Wednesday as the U.S. coronavirus fiscal support package and global economic recovery was expected to raise hopes for higher fuel demand.
U.S. West Texas Intermediate (WTI) crude futures rose 27 cents, or 0.6%, to $ 48.27 per barrel, as of 0114 GMT, while Brent crude futures added 24 cents, or 0.5%, to $ 51.33 per barrel.
The Democrat-led U.S. House of Representatives voted to meet President Donald Trump’s call to increase COVID-19 direct aid payments to Americans suffering from the pandemic to $ 2,000.
Asian shares bounced back on Wednesday when investors crashed in on a recent rally, as the euro plummeted to unseen highs in more than 2-1 / 2 years ahead in hopes of a rebound. -the gradual global economic recovery.
Oil prices could gain momentum as vaccination programs begin around the world next year.
In the short term, concerns about coronavirus locks are likely to outweigh benefits.
A new version of the virus in the UK has led to movement restrictions, hitting near-term demand and measuring prices, while hospitals and infections have risen in parts of Europe and Africa.
Demand for fossil fuels in the coming years could remain softer even after the pandemic as countries try to limit emissions to climate change. Major oil companies, such as BP Plc and Total SE, have released forecasts that include scenarios where global oil demand may have peaked in 2019.
Jan meeting. 4 of the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, an organization known as OPEC +, also interconnected across the market.
OPEC + cuts down on oil production cuts made this year to support the market. The group is expected to increase production by 500,000 barrels per day (bpd) in January, while Russia is backing another similar increase in February.
Reciting with Naveen Thukral; Edited by Sam Holmes