Crude oil prices are moving higher Tuesday morning, rebounding from losses in the previous session, amid hopes energy demand will pick up once more coronavirus vaccines are rolled out.
The signing of a $2.3 trillion government spending bill by U.S. President Donald Trump on Sunday, and expectations of additional stimulus from the government also contribute to oil’s uptick.
The bill signed by the President includes approximately $900 billion in coronavirus relief funds. Trump had previously resisted signing the legislation, calling for $600 in direct payments to individuals to be increased to $2,000.
Meanwhile, the U.S. House of Representatives have backed up Trump’s proposal to increase the stimulus checks to individuals. The proposal will now go to the Republican-controlled Senate for a vote.
West Texas Intermediate Crude oil futures for February are up $0.70 or 1.47% at $48.32 a barrel.
Brent crude futures are rising $0.66 or 1.3% at $51.56 a barrel.
Traders are also reacting to reports citing a poll by Reuters that oil stockpiles may have dropped last week. The report says crude stocks likely fell by 2.1 million barrels in the week to December 25.
The market is also looking ahead to the upcoming meeting of the Organization of the Petroleum Exporting Countries and allies, including Russia. The meeting is scheduled to take place next Monday (January 4, 2021).
The material has been provided by InstaForex Company – www.instaforex.com
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