Oil Rises on Hopes U.S. Pandemic Stimulus will Spur Fuel Demand

Oil rose on Tuesday as the United States moved towards expanding pandemic aid payments, potentially spurring fuel demand and stimulating economic growth, which pushed investors to take on more risk.

Brent crude was up 72 cents, or 1.4, at 51.58 a barrel by 1057 GMT, while U.S. West Texas Intermediate WTI crude futures added 67 cents, or 1.4, to 48.29 a barrel.

Oil appears to be underpinned by the passing of the U.S. stimulus and government funding omnibus legislation, OANDA market analyst Jeffrey Halley said.

The Democraticled U.S. House of Representatives voted to meet President Donald Trumps demand for 2,000 COVID19 relief checks on Monday.

The Republicancontrolled Senate will still need to vote on the measure.

Global shares rose for a fourth straight session on Tuesday on the U.S. stimulus hopes.

Still, concerns over coronavirus lockdowns capped gains.

A new variant of the virus in the United Kingdom has led to the reimposition of movement restrictions, hitting nearterm demand and weighing on prices, while hospitalizations and infections have surged in parts of Europe and Africa.

A Jan. 4 meeting of the Organization of the Petroleum Exporting Countries OPEC and allies including Russia, a group known as OPEC, also looms over the market.

OPEC is tapering record oil output cuts made this year to support the market. The group is set to boost output by 500,000 barrels per day bpd in January, and Russia supports another increase of the same amount in February….

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