South Belridge Oil Field is the fourth largest oil field in California and one of the most fertile in the US
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Oil rose on Tuesday, for the third time in four sessions, in anticipation of rising fuel demand as the United States may expand its pandemic aid payments and a Brexit deal is finally ready for trade between the Department Sustaining Europe and the UK.
Brent crude futures climbed 36 cents, or 0.7%, to $ 51.22 a barrel, as of 0151 GMT and US West Texas Intermediate (WTI) crude futures added 34 cents, or 0.7%, to $ 47.96 per barrel.
Crude rose along with gains in Asian shares, with Japanese stocks hitting at a 29-year high, an increase in investor risk appetite as the U.S. House of Representatives voted to raise pandemic relief payments to $ 2,000 from $ 600. The Senate still has to vote on the measure.
Projections for tightening U.S. crude oil stocks also supported prices.
U.S. crude oil stocks are expected to have declined last week, although refinancing investments rose, a Reuters poll ahead of this week’s data appeared on Monday.
Five analysts surveyed by Reuters estimated that, on average, crude stock fell 2.1 million barrels per week to 25 December.
However, concerns about coronavirus lockouts reduce 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.
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 and Russia is backing another similar increase in February.
Russian Deputy Prime Minister Alexander Novak said Monday that he expects an additional 5 million to 6 million bpd of oil demand in 2021, which has not overcome the pandemic.
Money managers raised their net futures and options options in the week to Dec. 21, the U.S. Commodity Futures Trading Commission said Monday. The speculator group builds its futures and options position in New York and London with 4,455 contracts to 325,787 during that period.