Oil Rises on Weaker USD & US Stimulus Hopes

We are now going on the third day of oil price increases, backed by demand coming from US economy stimulus, and a weak USD that makes crude oil cheaper for global buyers.

The US Dollar has indeed been having a challenging time amid the intensifying US-China tensions, and strengthening worries of coronavirus resurgence in the US.

On the side of demand, on the other hand, $1 trillion coronavirus aid package had been proposed by the US Senate Republicans yesterday, coupled with expanded unemployment benefits for millions due to expire this week. 

Additionally, investors are keeping an eye on the US Federal Reserve’s meeting, where the decision to keep interest rates close to zero for several years is the main topic on the agenda, as well as the US inventory data from the American Petroleum Institute industry group later on Tuesday and the government on Wednesday. Crude stockpiles are expected to have held steady, while refined stockpiles - to have declined, Reuters analysts comment.

Both WTI and Brent had seen gains, opening at $41.69 and $44 a barrel, respectively.

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