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Oil prices rose on Tuesday, supported by hopes that the United States will increase payments in an aid package linked to the pandemic, a move that could stimulate demand for fuel and stimulate economic growth.
Brent crude futures, the world benchmark, ended the trading session up 23 cents, or 0.5 percent, to settle at $ 51.09 a barrel.
U.S. West Texas Intermediate crude futures rose 38 cents, or 0.8 percent, to settle at $ 48.00 a barrel.
The Democratic-led US House of Representatives agreed to meet President Donald Trump’s demand to increase direct payments to Americans as part of a broad stimulus package to ease the repercussions of the Covid-19 pandemic to $ 2,000.
It was not clear whether Republicans in the US Senate would also support the move.
Analysts said that oil prices may gain strength with the acceleration of vaccination programs around the world with anti-Corona virus vaccines next year.
Traders were awaiting the latest reports on oil inventories in the United States, which are expected to show that crude stocks fell by 2.6 million barrels last week, while inventories of refined products increased.
The American Petroleum Institute report will be released later today.
The market is awaiting the meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, a group known as OPEC+, on January 4.
OPEC+ is working to trim record oil production cuts it implemented this year to support the market. The group is set to increase production by 500,000 bpd in January. Russia supports another increase of equal measure in February.
Russian Deputy Prime Minister Alexander Novak said on Monday that he expects an additional demand for oil between five million to six million barrels per day next year, indicating that the global demand for crude is still below levels before the coronavirus pandemic crisis
