Oil Rising on Hopes of Recovery in Demand And a Decrease in US Inventories

Oil rose on Wednesday, December 30, as prices received a boost from a fiscal stimulus package to mitigate the repercussions of the Coronavirus in the United States and lower crude oil inventories.

Brent crude futures rose 35 cents, or 0.7%, to $ 51.44 a barrel by 08:03 GMT, and US West Texas Intermediate crude added 30 cents, or 0.6%, to $ 48.30 a barrel.

The dollar fell to its lowest level in several years against many currencies, as dealers set aside a new delay in providing stimulus money in the United States and kept their bets that providing additional financial aid is still likely.

Asian stocks rose to record levels as investors bet on a strong economic recovery next year, at a time when there are few indications that policymakers will scale back massive stimulus efforts aimed at stemming declines caused by the Corona virus.

Oil prices may gain more strength as virus immunization programs start around the world in the next exhaust, allowing countries to ease restrictions on movement and company activities.

Data from the American Petroleum Institute shows that crude oil inventories fell by 4.8 million barrels last week to about 492.9 million barrels, beating analysts’ expectations in a Reuters poll, down 2.6 million barrels.