Crude Oil prices edge lower amid concern over U.S. stimulus
Crude Oil prices edge lower amid concern over U.S. stimulus

Crude Oil prices eased on Tuesday, giving up some of the earlier session's gains, as hopes for quick approval of new United States. Economic stimulus faded while new covid-19 infections around the world mount up.  Brent crude was down 15 cents at $55.73 by 0135 GMT, having risen nearly 1% on Monday. U.S. crude was also lower, dropping 5 cents to $52.72, after declining 1% in the previous session.

Have recently hit eleven-month highs, oil is caught between lingering doubts over any recovery in demand as the pandemic continues to rage, offset by optimism for more stimulus from the newly installed Biden administration in the U.S  to support economic growth as vaccines are rolled out.

"Through 2021, major supply and demand risks remain that threaten to jolt fundamentals into a much tighter or looser market," Citigroup said in a note. The bank cited the risk of higher supply if sanctions on Iranian crude are lifted, or U.S. drillers boost output from shale, against a bigger demand shock from the latest wave of lockdowns and restrictions.

European nations have set tough restrictions to combat the spread of the virus, while China is reporting rising new COVID-19 cases, casting a pall over demand prospects in the world's largest energy consumer.

Still, there are areas where demand for oil remains strong. In India, crude oil imports in December increased to their highest level in more than two years as the easing of coronavirus restrictions boosted economic activity.

On the supply side, compliance by the OPEC and its allies on pledged oil output curbs is averaging 85% in January, tanker tracker Petro-Logistics said on Monday. The findings suggest the group has improved compliance supply curb commitments.

Indian equity markets closed for Republic Day

TCS's market capital surges, become country's most valuable company

Global FDI fell by 42 pc in 2020, outlook remains weak


Join NewsTrack Whatsapp group
Related News