SINGAPORE (Reuters) – Brent crude futures came to an end on Tuesday in hopes of government stimulus boosting global economic growth and oil demand raises concerns that panicic COVID-19 pandemic locks could be upgraded globally to consume cooling fuel.
Brent crude times for March rose 17 cents, or 0.3%, to $ 54.92 a barrel before 0150 GMT after slipping 35 cents in the previous session.
US West Texas intermediate crude was at $ 52.25 per barrel, down 11 cents, or 0.2%. There was no settlement Monday as U.S. markets were closed for public holidays. WTI futures will end on Wednesday.
Investors are optimistic about demand in China, the world’s leading crude oil importer, after data released on Monday showed that foundry production rose 3% to a new record in 2020. China is also the only major economy in the world that avoided a recession last year. as many nations struggled to contain COVID-19 pandemics.
“Yesterday’s data out of China was good for oil prices,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney.
Investors are looking out for U.S. President Biden’s inaugural speech Wednesday for details of the country’s $ 1.9 trillion aid package.
Oil prices have also been supported by Saudi Arabia’s further supply cuts in the next two months which are expected to pull down global investments by 1.1 million barrels per day in the first quarter, ANZ analysts said.
Concerns over COVID-19 cases were rising across the globe and renewed locks with pressure on fuel demand were holding back oil prices.
ANZ analysts raised concerns about falling fuel sales in India in January from December and rising COVID-19 cases in China and Japan that could reduce oil demand.
“In Europe and the US, the slow roll-out of vaccines also raises concerns that demand will not diminish,” the bank said.
Reciting with Florence Tan; edited by Richard Pullin