WTI Crude Oil Makes Gains as Traders Hope For Biden’s Stimulus Rollout
WTI crude oil prices are continuing to climb higher in early trading on Wednesday as markets eagerly hope for more stimulus measures to be
WTI crude oil prices are continuing to climb higher in early trading on Wednesday as markets eagerly hope for more stimulus measures to be rolled out in the US which could bolster the economy and raise the demand for oil. At the time of writing, WTI crude oil is trading at around $53.33 per barrel.
Oil traders are anticipating that President elect Joe Biden and his administration could roll out the proposed $1.9 trillion worth of fiscal stimulus measures soon after the inauguration. On Tuesday, Biden’s nominee for Treasury Secretary, Janet Yellen, stressed on the need for lawmakers to roll out more financial aid to counter the effects of the pandemic on the economy.
Crude oil prices were boosted by Yellen’s comments as increased spending could increase consumer consumption of fuel across the world’s largest energy consumer. Oil is also trading bullish as economists anticipate the API and EIA to report a drawdown in US crude stockpiles by 300k barrels for the past week.
Gains in crude oil, however, remain limited as the IEA has revised its oil demand forecast for Q1 2021 lower by 580k bpd in the wake of the latest round of lockdowns across Europe. Reinforcing this sentiment was Germany’s decision to keep shops and schools shut until February 14, amid the worrying rise in new coronavirus cases across the country.
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