Oil prices rose on Tuesday in the hope that the U.S. will soon reach an agreement on a $ 2 trillion coronavirus aid package that could reduce the economic impact of the outbreak and support oil demand.
Brent crude oil LCOc1 futures for May delivery rose by 62 cents, or 2.3%, to $27.65 a barrel by 0346 GMT while West Texas Intermediate (WTI) crude CLc1 futures gained 76 cents, or 3.3%, to $24.12. Both price benchmarks had risen over $1 earlier before pulling back slightly.
On Monday, the U.S. Federal Reserve launched an extraordinary series of programs to support an economy stemming from trade restrictions that scientists say they need to slow down the coronavirus pandemic.
The expected stimulus lowered the US dollar as it would increase the cash supply.The dollar index .DXY, which measures the greenback against six major currencies, fell 0.5% on Tuesday.
Nevertheless, the overall demand outlook will remain low as long as travel restrictions remain and governments restrict commercial activities to prevent coronavirus spread. The pressure of this situation on producers and refineries continues.