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Oil rises in hopes of stimulus measures

by Bunkerist
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Oil prices rose on Monday with  hoping the stimulus  efforts will help to boost the US economy, but gains remain limited to tensions between Washington and Beijing.

Brent crude LCOc1 rose 7 cents to settle at $43.41 a barrel, while West Texas Intermediate (WTI) crude CLc1 rose 31 cents to settle at $41.60 a barrel.

The US was expected to provide a new coronavirus aid package of $ 1 trillion on Monday afternoon.

The weak US dollar, which made commodities in dollars cheaper for those holding other currencies, also helped increase the price of oil. The US dollar index was damaged due to economic domestic concerns and worsening US-China relations, reaching its lowest level since June 2018.

After the consulates in Houston and Chengdu closed, the tension between the two largest economies of the world, led investors to keep assets on much secure instruments as if gold and bonds, but away from risky assets such as oil futures.

Meanwhile, global cases of the new coronavirus have exceeded 16 million and the virus is increasing in the United States.

Besides oil demand increased in the second quarter, the aforementioned lockdowns made the recovery unstable due to the increasing infection rates.

Brent continued to make monthly earnings in the fourth month, and WTI is rising the third month with the supports of supply cuts  made by the Organization of Petroleum Exporting Countries and Russia.

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