Oil prices higher in hopes of US stimulus, demand recovered By Reuters

By Naveen Thukral and Shu Zhang

SINGAPORE (Reuters) – Crude oil gained more ground on Tuesday, with prices underlined by US stimulus expectations and a slump in Asian demand as economies reopen.

Brent crude () added 22 cents, or 0.5%, to $ 45.21 a barrel, starting at 0441 GMT. West Texas Intermediate US crude () rose 32 cents, or 0.8%, to $ 42.26 per barrel.

“Crude oil received amid signs of further stimulus measures,” ANZ said in a note.

“U.S. lawmakers have negotiated the massive economic package of virus delivery with Treasury Secretary Steven Mnuchin saying they are areas where compromise is possible and a fair deal could be agreed. The sentiment was also stimulated by comments from Saudi Aramco (SE 🙂 that the question improves. “

Prices gained support after US President Donald Trump tweeted that top congressional Democrats want to meet with him about coronavirus-related economic relief.

The talks between Democrats and the Trump administration ended last week.

A weaker US dollar also helped support higher oil prices, said Energy Aspects analyst Virendra Chauhan.

After being stable on Monday, the dollar slipped again on Tuesday, demanding 0.1% against a currency exchange rate () and falling further against risky currencies such as the Australian dollar.[FRX/]

U.S. passenger car traffic, hit hard by the coronavirus pandemic, was down 80 percent in June from a year earlier, official figures showed, but still nearly twice the May levels.

On Sunday, Saudi Arabian Aramco CEO Amin Nasser said he sees the oil demand in Asia as economies gradually open up.

China’s factory auction demanded in July, driven by a rise in global oil prices and when industrial activity climbed back to pre-coronavirus levels, added to signs of recovery in the world’s second largest economy.

Energy companies have begun withdrawing millions of tonnes of oil from the US government’s emergency after renting storage facilities to help manage a glut of crude this spring, after energy demand plunged at COVID -19 lockdowns, a Department of Energy website revealed on Monday.