Oil prices surged in the third session on Wednesday and soared with wider financial markets, as the U.S. is expected to approve a large stimulus package to reduce the economic impact of the coronavirus pandemic.
U.S. crude CLc1 rose to a high of $25.24 a barrel early in the session and was at $24.86 a barrel, up 85 cents, or 3.5%, at 0732 GMT.
Brent crude LCOc1 was trading up 65 cents, or 2.4%, at $27.80 a barrel after earlier rising to a high of $28.29.
US senators and Trump administration officials agreed on a $ 2 trillion incentive bill expected to go through Congress later Wednesday.
Still, as governments announce nationwide restrictions to prevent the spread of coronavirus, demand for petroleum products, especially jet fuel, is falling worldwide. Some banks’ Brent crude oil price forecast for the second quarter fell from $ 33 to $ 20 a barrel in April due to the shock of demand caused by the coronavirus outbreak and the expected increase in supply from Saudi Arabia and Russia in April.
Oil prices have fallen by 45% so far this month, as the Organization of the Petroleum Exporting Countries (OPEC) and other producers known as OPEC +, including Russia, could not agree to extend production and support prices by the end of March.
By the way, It is said that crude oil stocks in the US fell to 451.4 million barrels as of March 20, and gasoline and distillate product stocks also dropped last week.