Friday, 19th April, 2024
Friday, 19th April, 2024

Oil passes $55 on hopes for more US stimulus spending

Brent oil climbed to near $55 a barrel as Saudi Arabia’s unilateral output cut eased over-supply fears and a Democratic sweep in the U.S. paved the way for more stimulus spending.

Futures in London rose 0.6% on Friday and rose nearly 6% for the week. Democratic wins in elections in Georgia mean the party is poised to take control of the Senate, House and presidency, spurring a broad move higher in financial markets. That came after Saudi Arabia pledged earlier in the week to cut production by 1 million barrels a day in February and March.

However, the spread of coronavirus remains a short-term cap for further gain. The escalating incident prompted calls from the World Health Organization to take tougher action across continents across Europe, while the latest U.S. restrictions have already sunk into fuel sales. China has locked up a city of 110 million people near Beijing to control an outbreak.

Cruise has risen more than 40% since the end of October due to a few more lockdown of the vaccine, even for multiple breakthrough series of the vaccine. A weaker dollar has also helped boost demand for raw materials such as precious oils.

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