On Tuesday, WTI crude oil prices continue to strengthen as markets await eagerly for progress on the US’s coronavirus relief bill and amid expectations for an increase in oil demand as Asian economies emerge out of lockdowns. At the time of writing, WTI crude oil is trading around $42.26 per barrel.

Recent statements by US congressional leaders hint at eagerness to resume negotiations towards finalizing the next round of fiscal stimulus measures in the wake of the ongoing pandemic. Discussions on the bill have failed to make much progress so far with Democrats wanting up to $3 trillion to be set aside towards stimulus efforts – something Republicans are not too keen on.

Crude oil prices have also been supported over rising expectations for oil demand to pick up as key economies across Asia ease lockdown restrictions and work towards recovery. Encouraging economic data releases, especially out of China, indicate signs of a rebound towards pre-pandemic levels.

Late last week, Iraq confirmed that it would curb crude production by 40,000 bpd during August and September to make up for its overproduction of crude oil over the past three months. The supply cuts should help balance oil markets better even as OPEC+ countries called off the deeper production cuts earlier this month.