SINGAPORE (Reuters) – Crude oil gained more ground on Tuesday, with prices underpinned by expectations of U.S. stimulus and a rebound in Asian demand as economies reopen.

Brent crude LCOc1 added 7 cents, or 0.2%, to $45.06 a barrel, as of 0027 GMT. West Texas Intermediate U.S. crude CLc1 rose 14 cents, or 0.3%, to $42.08 a barrel.

“Crude oil gained amid signs of further stimulus measures,” ANZ said in a note.

“U.S. lawmakers continued negotiations on the massive virus relief economic package with Treasury Secretary Steven Mnuchin saying there are areas where compromise is possible and a fair deal could be agreed upon. Sentiment was also boosted by comments from Saudi Aramco that demand is improving.”

Prices found support after U.S. President Donald Trump tweeted that top congressional Democrats wanted to meet with him on coronavirus-related economic relief.

The talks between Democrats and the Trump administration broke down last week.

On Sunday, Saudi Arabian Aramco CEO Amin Nasser said he sees oil demand rebounding in Asia as economies gradually open up.

China’s factory deflation eased in July, driven by a rise in global oil prices and as industrial activity climbed back towards pre-coronavirus levels, adding to signs of recovery in the world’s second-largest economy.

Iraq said on Friday it would cut its oil output by a further 400,000 barrels per day in August and September to compensate for its overproduction in the past three months.

The move would help it comply with its share of cuts by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+.

Energy companies have begun taking back millions of barrels of oil from the U.S. government’s emergency stockpile after renting storage in the facility to help manage a glut of crude this spring after energy demand collapsed during COVID-19 lockdowns, a Department of Energy website showed on Monday.

Reporting by Naveen Thukral; editing by Richard Pullin

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Chinese firm develops AI-powered ultrasound tech for breast screening

BEIJING — Chinese sci-tech company Medical AI has developed an AI-powered ultrasonic tool for breast screening that can accurately detect lesions. The ultrasound imaging system driven by artificial intelligence has made real-time video detection a reality, transcending the previous two-dimensional…

COVID-19 tanks U.S. economy in second quarter, outlook shaky

WASHINGTON (Reuters) – The U.S. economy contracted at its steepest pace since the Great Depression in the second quarter as the COVID-19 pandemic shattered consumer and business spending, and a nascent recovery is under threat from a resurgence in new…

Wall Street set to open higher after four-day selloff

(Reuters) – Wall Street’s main indexes looked set to gain ground on Wednesday after suffering their worst four-day percentage fall in more than a year on fears of the economic damage from the global spread of the coronavirus. Investors were…

One of the biggest auto trends of 2020: the long-awaited embrace of electric pickups

(CNN Business)2020 was tough on many industries, but the auto industry actually saw some bright spots. Despite having to shutdown production for weeks at a time, some factories were able to pivot to make personal protective equipment and other medical…