Oil Rises on Hopes to Stimulate US Recovery and Demand

Crude oil prices rose on Tuesday 11 August, supported by expectations of US stimulus that will help launch the largest consumer of oil in the world, and a recovery in Asian demand as economies reopen.

Brent crude added 29 cents, or 0.6%, to $ 45.28 a barrel by 08:19 GMT. US West Texas Intermediate crude rose 38 cents, or 0.9%, to $ 42.32 a barrel.

US President Donald Trump wrote on Twitter that the top Democratic members of Congress want to meet with him on an agreement to mitigate the economic effects of the Coronavirus. Talks between Democrats and the Trump administration collapsed last week.

Prices also received support from signs of recovery in oil demand in Asia.

On Sunday, Amin Al-Nasser, chief executive of Aramco, said he saw demand picking up in Asia with the gradual opening up of economies.

China’s producer price index declined in July, driven by the rise in global oil prices at a time when industrial activities rose again towards pre-Coronavirus levels, adding to signs of recovery in the world’s second largest economy. It also supported a rise in European stocks, which rose for the third consecutive session today, with gains made by the auto industry shares thanks to sales data in China.