Crude oil rose further on Tuesday, as US stimulus expectations fell and Asian demand increases.
“Crude oil growth was among signs of further stimulus action,” ANZ said in a note.
“U.S. lawmakers are in talks with Treasury Secretary Steven Menuchin on a massive virus relief finance package, saying there are areas where a deal is possible and a reasonable agreement can be accepted. Saudi Aramco’s comments have also raised sentiment and demand is improving.”
A tweet from US President Donald Trump backed up prices, with top Congress Democrats meeting with him on the financial relief of the coronavirus. Talks between the Democrats and the Trump administration took place last week.
Energy analyst Virender Chauhan said the weak US dollar also contributed to higher oil prices.
The dollar fell again on Tuesday after stabilizing on Monday, with the basket of currencies easing against the USD = 0.1% and falling against dangerous currencies such as the Australian dollar.
U.S. passenger traffic, largely affected by the coronavirus epidemic, fell by 80% in June, up from a year earlier, official figures show, but almost double that in May.
Saudi Arabia CEO Amin Nazar said on Sunday that oil demand in Asia was reversing as the economy slowly opened up.
In July, China’s factory inflation eased, leading to a rise in global oil prices and industrial activity back to the level of coronavirus, signaling recovery in the world’s second largest economy.
COVID-19 showed millions of barrels from U.S. government emergency reserves to energy companies to handle crude oil this spring after fuel demand fell during the lockdown. The oil began to withdraw.