• 3 minutes Cyberattack Forces Shutdown Of Largest Gasoline Pipeline In United States - Zero Hedge
  • 6 minutes Renewable Energy Capacity Jumped 45% Worldwide In 2020; IEA Sees 'New Normal'
  • 11 minutes Forecasts for Natural Gas
  • 6 hours U.S. Presidential Elections Status - Electoral Votes
  • 8 hours .
  • 8 hours Electric vehicle market growth is a blessing for some metals — and not a big worry for oil
  • 17 hours Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 hours Joe Biden's Presidency
  • 3 days Сryptocurrency predictions
  • 2 days CRAPPIFORNIA DOES IT AGAIN! California proposes to steer new homes from gas appliances
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Rises On Expectations Of ‘Big’ U.S. Stimulus Package

Oil prices shook off the risk-off trade on Monday and rose early on Tuesday, amid expectations that U.S. Treasury Secretary nominee Janet Yellen will push for a large relief package to support the U.S. economic recovery.

As of 10:39 a.m. ET on Tuesday, WTI Crude prices were up 0.92 percent at $52.80 and Brent Crude was trading up 1.92 percent at $55.80.

A weaker U.S. dollar also helped the rise in crude oil prices. The dollar slipped from a one-month high early on Tuesday, just before Yellen was expected to speak at the Senate Finance Committee at her confirmation hearing. According to Reuters, Yellen was expected to say that the U.S. must “act big” in the upcoming stimulus package.  

The weaker dollar, which makes crude cheaper for holders of other currencies, as well as expectations that a large stimulus package will bolster economic growth in the world’s largest economy later this year, pushed oil prices higher on Tuesday.

In addition, despite the fact that the International Energy Agency (IEA) cut its oil demand recovery outlook for this year by 300,000 bpd to 5.5 million bpd, the agency noted in its closely-watched Oil Market Report on Tuesday that “a widespread vaccination effort and an acceleration in economic activity is expected to spur stronger growth in the second half of the year.”

“Much more oil is likely to be required, given our forecast for a substantial improvement in demand in the second half of the year,” the IEA said.

Some small supply outages may have also supported oil prices. Kazakhstan, a key OPEC+ producer of the non-OPEC group led by Russia, has seen in recent days its oil production lower than average because of power outages in freezing winter. Libya is also reportedly pumping oil at a rate lower by 200,000 bpd compared to last week after a leak forced the shutdown of an oil pipeline.

Crude oil prices are holding up well and have yet to break any downside levels that could signal a deeper short-term correction, Saxo Bank said in a market commentary early on Tuesday.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News