Oil prices soared on US stock exchanges before Joe Biden become US president on Tuesday.
The optimism that global economic growth may increase following further incentives promised by the President also contributes to prices. Traders remain hoping that the support from the promised ($ 1.9 trillion) stimulus package would have a rapid positive impact on the markets.
Brent futures for March delivery rose $1.15, or 2.1%, to settle at $55.90 a barrel, while West Texas Intermediate (WTI) crude rose 62 cents, or 1.2%, to settle at $52.98. Front-month February WTI futures expire on Wednesday.
Wall Street main indices rose after optimistic gains from major US banks and positive comments from Yellen before Biden took office on Wednesday.
In China, the world’s largest crude oil importer, there is an optimistic aspect in the consideration of investors after data showed that refinery production increased 3% in 2020 to a record level.
The oil market is cautiously optimistic that this year it will recover from the decline in demand caused by the coronavirus epidemic.
Crude prices rose even though the International Energy Agency (IEA) cut its outlook for oil demand in 2021 but pointed to a recovery in the second half of the year to an annual average of 96.6 million barrels per day.